THE COCA-COLA COMPANY’S

HUMAN RIGHTS REPORT 2016-2017

Contents
3 Foreword by James Quincey

5 The Coca-Cola Company at a glance

6 The global human rights context

8 The Coca-Cola Company’s Human Rights Policy

9 Embedding our commitments into governance

12 Our supply chain matters

19 Salient human rights risks:

20 Safety and health of all workers/security

22 Equality/nondiscrimination and related issues/risks
25 Child labor
26 Forced migrant labor/forced labor of seasonal workers
28 Freedom of association
29 Access to water
32 Working hours
33 Healthy lifestyles
34 Land rights
36 Product safety/quality
36 Rights linked to sponsorships
39 Right to privacy
41 Linkage to corruption/anti-bribery risks
through value chain

42 Access to remedy

44 Achievements, lessons and improvements

46 Stakeholder engagement, collaborations

and memberships
 Welcome to the first
Human Rights Report
2016-2017
human rights report of
Table of contents The Coca-Cola Company!
Foreword by
Foreword byJames
James Quincey
Quincey

The Coca-Cola Company at a glance

The global human rights context

Everywhere The Coca-Cola Company risks within the Company and the
The Coca-Cola Company’s Human operates around the world, we do so Coca-Cola system, including our more
Rights Policy
at the pleasure of the communities than 800 plants, vast distribution
Embedding our commitments into
we call home. If we don’t respect our system, suppliers and extended value
governance
role in society and do everything we chain. Across everything we do as a
Our supply chain matters
can to create a net positive impact on system, one inalienable right we must
Salient human rights risks communities, our social license can be work to instill in every associate is

Access to remedy revoked at any moment. respecting and protecting human rights.

Achievements, lessons and That social license to operate is This is a foundational part of maintaining
improvements
grounded in our ability to understand our social license.
Stakeholder engagement, and mitigate social and environmental
collaborations and memberships We have and continue to develop
comprehensive policies, principles
and processes to help ensure human
rights are respected and protected,
and work to identify and address any
gaps at every point of our business
and along our supply chain – from the
driver delivering our products, to the
technician ensuring product safety, to
the mill workers refining sugar, to the
small farmers growing the crops we rely
on every day.

Our commitment to human rights

has been steadfast over the years,
and our policies and practices are
aligned with the UN Guiding Principles
on Business and Human Rights. We
continuously strive to demonstrate our
commitment through our sustainability
and community initiatives, as well as our
efforts to identify and remedy human

3
 rights impacts. And it starts with our
own people, making sure they have safe,
supportive and respectful workplaces
Human Rights Report where the dignity of every associate is
2016-2017
recognized.
Table of contents
Many of our efforts and initiatives are
Foreword by
Foreword byJames
James Quincey
Quincey
outlined in this, our first Human Rights
The Coca-Cola Company at a glance Report.

The global human rights context

Over the years, stakeholders’
The Coca-Cola Company’s Human expectations for protecting and
Rights Policy
respecting human rights have evolved,
Embedding our commitments into
and so, too, has our approach.
governance

Our supply chain matters This year, we achieved some key

milestones, including the completion
Salient human rights risks
of a global exercise with both internal
Access to remedy
and external stakeholders to identify
Achievements, lessons and our salient human rights risks – those
improvements
risks that have the most severe actual
Stakeholder engagement, and potential impacts on human rights
collaborations and memberships
associated with our activities and
business relationships.

We are proud to share some of our

stories, learnings and our most recent
developments through this report, and
we look forward to continued dialogue
and feedback from our corporate peers,
partners and other stakeholders as our
human rights journey continues.

Yours,

James Quincey

4
 CHAPTER 1:

Human Rights Report

The Coca-Cola Company
2016-2017

Table of contents at a glance

Foreword by James Quincey

TheCoca-Cola
The Coca-Cola Company
Company at
ataaglance
glance

The global human rights context The Coca-Cola Company refreshes the launched a new growth strategy with the

The Coca-Cola Company’s Human world with more than 500 sparkling and aim of making us a consumer-centered
Rights Policy still brands to people in more than 200 total beverage company based on five

Embedding our commitments into

countries and territories. Of our 21 billion- strategic imperatives:
governance dollar brands, 19 are available in lower- or
• Accelerating the growth of our
no-sugar options to help people moderate
Our supply chain matters
consumer-centric brand portfolio. We’re
their consumption of added sugar. We are
Salient human rights risks building a vibrant, modern portfolio that
a global business that operates locally, in
provides refreshment, great taste, uplift,
Access to remedy every community where we do business.
hydration, pleasure and more.
We are able to create global reach with
Achievements, lessons and
improvements local focus because of the strength of
• Driving revenue growth. Every market—
the Coca-Cola system, which comprises
Stakeholder engagement, whether emerging, developing or
collaborations and memberships our Company and our more than 250
developed—has a targeted role to play
independent bottling partners worldwide.
in growing our revenue.

The Coca-Cola Company does not own,

• Strengthening our global system. We’re
manage or have a controlling interest
working with our partners to complete
in the overwhelming majority of our
the ongoing work of refranchising
bottlers. Our Company manufactures
territories to strong, capable and
and sells concentrates, beverage bases
committed bottling partners.
and syrups to bottling operations; owns
the brands; owns the fountain business; • Digitizing our enterprise. We’re
and is responsible for consumer-brand leveraging technology to improve the
marketing initiatives. Bottling partners way we engage with our consumers,
manufacture, package, merchandise and customers and colleagues.
distribute the final branded beverages to
• Unlocking the power of our people.
our customers, who then sell our products
We’re making our organization faster,
to consumers.
leaner and more agile, empowering our
All bottling partners work closely with people to act boldly and learn as we go.
customers – grocery stores, restaurants,
The full 2016 review of
convenience stores, retail outlets, movie
The Coca-Cola Company can be
theaters and amusement parks, among
downloaded under the following link:
others – to execute localized strategies
http://www.coca-colacompany.com/2016-
developed in partnership with our
year-in-review/downloads
Company.

In May 2017, James Quincey assumed

the role of Chief Executive Officer
(CEO) for The Coca-Cola Company and

5
 CHAPTER 2:

Human Rights Report

The international human
2016-2017

Table of contents rights context: The UN

Foreword by James Quincey

The Coca-Cola Company at a glance Guiding Principles on

Theglobal
The globalhuman
human rights
rights context
context

The Coca-Cola Company’s Human

Rights Policy
Business and Human
Embedding our commitments into
governance
Rights and the UNGP
Our supply chain matters

Salient human rights risks

reporting framework
Access to remedy

Achievements, lessons and The UN Guiding Principles (UNGP) • The corporate responsibility to respect
improvements on Business and Human Rights is an human rights, meaning to act with due

Stakeholder engagement,
authoritative global standard, having diligence to avoid infringing on the rights
collaborations and memberships been unanimously endorsed by the UN of others and address adverse impacts
Human Rights Council in June 2011. with which they are involved
The UNGP are based on a three-pillar
• The need for greater access to
framework, which consists of:
effective remedy, both judicial and
• The state duty to protect human non-judicial, for victims of business-
rights against abuse by third related human rights abuse
parties, including business, through
The Coca-Cola Company has publicly
appropriate policies, legislation,
supported the UNGP on Business and
regulation and adjudication
Human Rights from their inception.
We continue to focus on all three
components necessary in a corporate
context under the UNGP:

• A policy commitment to respect

human rights

6
 • A due diligence process to identify, linked to their operations, products or
prevent, mitigate and be accountable services by their business relationships.
for adverse human rights impacts
The Coca-Cola Company participates in
Human Rights Report • Processes to enable the remediation the Business Learning program of Shift,
2016-2017
of the adverse human rights impacts a nonprofit organization that facilitates
Table of contents the Company causes or to which it dialogue, builds capacity and develops new
contributes
Foreword by James Quincey approaches to implementing the UNGP
with companies, governments, civil society
The Coca-Cola Company at a glance This framework is the foundation of
organizations and international institutions.
our policies and programs related to
Theglobal
The globalhuman
human rights
rights context
context
human rights. We expect our Company, In 2015, Shift, jointly with the auditing
The Coca-Cola Company’s Human
bottling partners and suppliers to avoid
Rights Policy company Mazars, launched the
causing or contributing to human rights UNGP Reporting Framework, offering
Embedding our commitments into infringements as a result of business
governance comprehensive guidance for companies to
actions. Furthermore, our Company, report on human rights issues. This Human
Our supply chain matters bottling partners and suppliers are Rights Report is based on the UNGP
responsible for preventing or mitigating
Salient human rights risks Reporting Framework. We appreciated
adverse human rights impacts directly Shift’s support as we developed this report.
Access to remedy

Achievements, lessons and

improvements

Stakeholder engagement,
collaborations and memberships

“For companies working to respect people’s

fundamental dignity and welfare – their human rights —
identifying the human rights risks connected with their business is
the critical first step. It is the key that unlocks the potential for
transformative positive change in people’s lives. Once companies understand
these risks, they are empowered to manage them effectively, leading
ultimately to better outcomes for all.

The global standard of the UN Guiding Principles on Business and Human

Rights provides the roadmap for this change process. The UNGP Reporting
Framework in turn translates the Guiding Principles into a set of straightforward
questions: questions to which any company should want to have answers as part
of managing its business well. It therefore helps companies see how to minimize
risks to people, reduce the related operational, reputational, financial and other
risks to their own business, and provide meaningful information to investors
and stakeholders so they can understand the efforts and progress underway.
Utilizing the UNGP Reporting Framework helps companies like
The Coca-Cola Company improve the maturity of their human
rights reporting and performance.”

CAROLINE REES, PRESIDENT

AND CO-FOUNDER, SHIFT

7
 CHAPTER 3:

Human Rights Report

Our starting point:
2016-2017

Table of contents The Coca-Cola Company’s

Foreword by James Quincey

The Coca-Cola Company at a glance Human Rights Policy

The global human rights context

TheCoca-Cola
The Coca-ColaCompany’s
Company’s Human
Human
Rights Policy
Rights Policy
The Company has been on a human rights Our Human Rights Policy applies to
Embedding our commitments into journey since the late 1990s. In 2003, we The Coca-Cola Company, the entities that we
governance started our social auditing program and own, the entities in which we hold a majority
Our supply chain matters in 2005, we established a core Global interest and the facilities we manage. It can
Workplace Rights team to manage and be downloaded here. At the end of 2016,
Salient human rights risks
drive the Company’s human rights approach 89 percent of Company-owned facilities
Access to remedy and engagement. In 2007, we launched a were in full compliance with our Human

Achievements, lessons and public Human Rights Statement in which Rights Policy, and the remaining facilities are
improvements we committed to respect internationally working on action plans for alignment in the

Stakeholder engagement,
recognized human rights principles in our near term.
collaborations and memberships business conduct. We also developed our
In the first half of 2017, we have worked
2007 Workplace Rights Policy and 2012
to revise our Human Rights Policy to
Global Mutual Respect Policy. In 2014,
reflect lessons learned from our in-depth
we combined these documents into one,
assessments on salient human rights risks,
comprehensive Human Rights Policy. The
which are the most severe potential impacts
Policy was directly communicated from
associated with our business. We have
then CEO and Chairman Muhtar Kent and
consulted widely with NGOs, civil society
translated into 17 different languages.
groups, trade unions, investors and key
The Coca-Cola Company’s Human Rights experts around the globe to ensure our
Policy, which was approved by our Board updated policy meets the expectations,
of Directors, is based on the Universal concerns and demands of stakeholders. We
Declaration of Human Rights and the received a valuable amount of constructive
International Labor Organization’s Declaration feedback, comments and suggestions,
on Fundamental Principles and Rights at which have decisively influenced the revision
Work. It covers the following topics: of our policy.

• Respect for human rights Once the revised Human Rights Policy is
• Community and stakeholder engagement launched December 10, 2017, we will put
• Valuing diversity considerable efforts into its dissemination

• Freedom of association and collective within the Company, including through

bargaining translations into relevant languages,

• Safe and healthy workplace videos and leadership messages. We will

also examine whether existing guidance
• Workplace security
brochures fully cover the revised policy
• Forced labor and human trafficking
or if new guidance is required to support
• Child labor
associates with implementation.
• Work hours, wages and benefits
• Guidance and reporting for employees

8
 CHAPTER 4:

Human Rights Report

Embedding our
2016-2017

Table of contents commitments into

Foreword by James Quincey

The Coca-Cola Company at a glance The Coca-Cola Company’s

The global human rights context

The Coca-Cola Company’s Human

Rights Policy
governance
Embedding
Embeddingour commitments
our into
commitments
governance
into governance
Human Rights is a key focus among the Within the Company, the Global
Our supply chain matters
top leadership of our Company. Workplace Rights Department is in
Salient human rights risks The Coca-Cola Company’s Chairman of charge of supporting human rights

Access to remedy
the Board Muhtar Kent and CEO James policy and governance, addressing
Quincey support and communicate global issues, identifying human rights
Achievements, lessons and
our Human Rights Policy internally and risks throughout the value chain,
improvements
externally. At the Board of Directors level, and developing easy-to-use, due-
Stakeholder engagement,
the Public Issues and Diversity Review diligence tools to help identify and
collaborations and memberships
Committee, chaired by former U.S. mitigate human rights risks. The Global
Secretary of Labor Alexis Herman, has Workplace Rights Director reports to
oversight of the Company’s policies related the Chief People Officer and informs the
to human rights and their implementation. Board of Directors semiannually on open

Outreach, communication and

governance activities to raise awareness and
strengthen capacity on human rights internally

• Annual: Human Rights Day We also have developed a mobile phone

communication app, which encompasses guidance,
checklists and contacts, to provide
• Semiannually: Human Rights update to associates with direct and easy access to
Board of Directors these materials, independently wherever
they are located. In spring 2017, we updated
• Quarterly: Performance scorecards,
the app to make it more comprehensive
open issues report
and user-friendly. The app, which is publicly
available, can be found here. The app
• Ongoing: Policy and resource materials,
is also promoted through our internal
ethics training, videos and blogs on
progress and other relevant information Company app-store and internal website.

9
 issues, risks and challenges as well as Rights Policy, the Company provides a
progress against our commitments. series of human rights training brochures to
employees worldwide. In addition, we have
The Global Workplace Rights Department
Human Rights Report Human Rights Due Diligence Checklists
works with a wide variety of departments
2016-2017 for a range of functions and operational
across the Company, such as procurement,
settings, such as for plant siting, micro-
Table of contents
health and safety, diversity and inclusion,
distribution center operations, migrant
Foreword by James Quincey public affairs, communications and
labor, contract labor and many others.
sustainability, legal and enterprise risk
The Coca-Cola Company at a glance These guidance and checklists are available
management. Topics related to business
via our Company’s internet site:
The global human rights context
and human rights and responsible business
The Coca-Cola Company’s Human conduct are regularly included in senior • Human Rights Brochure for All
Rights Policy management meetings to ensure awareness Employees

Embedding our commitments into and coherence within the Company

Embedding our commitments • Human Rights Brochure for Leaders
governance
into governance and the Coca-Cola system. In addition,
• Human Rights Policy Manager’s Guide
Our supply chain matters the implementation of the Company’s
Human Rights Policy and Supplier Guiding • Human and Workplace Rights Issue
Salient human rights risks
Principles are reflected in scorecards of Guidance
Access to remedy individual Business Units around the world, • Global Workplace Rights
so implementation receives the necessary Implementation Guide
Achievements, lessons and
improvements attention and importance at the local level.

Stakeholder engagement,
In order to enable our associates to fully
collaborations and memberships
meet expectations described in our Human

Key topics discussed at the Board

with regards to business and human
rights 2016-17 include:

• Compliance with human rights policy and

supplier guiding principles
• Labor relations
• Diversity and inclusion
• Mega-sporting events
• Salient human rights risks
• Health and safety
• Land, forced labor, and child labor
• Human rights benchmarking
• Supply chain risks in 2016-17 and beyond
• Global workplace rights strategic priorities
• Developments in multilateral organization
• Human rights due diligence

10
 • Pass It Back Toolkit

• Human Rights Due Diligence Checklist - In fall 2015,

we asked our employees
Background and Guidance
globally, through anonymous polling,
Human Rights Report
• Human Rights Due Diligence Checklist if they feel pressured to compromise
2016-2017
for Plant Siting Company policy or the law to meet
Table of contents objectives. Of the respondents,
• Human Rights Due Diligence Checklist
Foreword by James Quincey

The Coca-Cola Company at a glance

for Micro Distribution Centers

• Human Rights Due Diligence Checklist

for Migrant Workers
%
would not feel pressured. We took action
The global human rights context
to address issues in parts
• Human Rights Due Diligence Checklist of the organization where
The Coca-Cola Company’s Human
Rights Policy for Contract Labor the scores were lower.

Embedding
Embeddingour commitments
our into
commitments • Human Rights Due Diligence Checklist
governance
into governance for Pre-sourcing Design

Our supply chain matters • Human Rights Due Diligence Checklist

Salient human rights risks for Child Labor in Agriculture

Mergers and acquisitions (M&A) present
• Human Rights Due Diligence Checklist
Access to remedy a range of human rights-related risks
for Non-trademark Activation
Achievements, lessons and
and challenges for companies to
improvements manage. In 2016, the M&A team received
in-depth guidance to ensure potential
Stakeholder engagement,
collaborations and memberships human rights impacts are fully taken into
account in decision making and during
the merger and acquisition process. The
M&A team has a procedure in place to
escalate human rights-related issues
within the Company as they arise.

With the refranchising of our bottling

operations in important markets,
such as North America and China, we
“The area of Human Rights is a key focus of the
understand additional efforts will need
Public Issues and Diversity Review Committee.
to be undertaken for future compliance
Our ongoing, vigilant respect for Human Rights reflects with our values and principles. One
the core values of the Company and underpins the Company’s focus, for example, will be to support
ability to sustain and strengthen our social license to bottling partners with supplementary
operate. Therefore, as a Board, we follow very closely the guidance and check that existing
implementation of the Company’s human rights work as well guidance is up-to-date.
as the Company’s 2020 Global Workplace Rights commitments.
We aim to ensure that the Company takes a comprehensive
approach to human rights, which encompasses the way
the Company does business, how it grows and
how it engages with stakeholders.”

ALEXIS HERMAN, CHAIR OF THE

PUBLIC ISSUES AND DIVERSITY
REVIEW COMMITTEE

11
 CHAPTER 5:

Human Rights Report

Our supply chain matters
2016-2017

Table of contents

Foreword by James Quincey Our responsibility does not end at the are a part of all contractual agreements
company gate. Aligned with the UNGP between The Coca-Cola Company and
The Coca-Cola Company at a glance
and the Organization for Economic our direct and authorized suppliers. We
The global human rights context Co-operation and Development (OECD) expect our suppliers to develop and
The Coca-Cola Company’s Human Guidelines for Multinational Enterprises, implement appropriate internal business
Rights Policy we seek to avert any human rights processes in compliance with the SGP.

Embedding our commitments into violations by our system partners and

governance
We closely monitor the implementation
across our global value chain linked to
of the SGP by direct, authorized
Oursupply
supplychain
chain matters
matters
our products. We expect our suppliers
Our
suppliers and apply the equivalent audits
and system partners to embrace
Salient human rights risks to independent bottlers. The Company
responsible workplace practices and
utilizes independent third parties to
Access to remedy uphold the principles of our Human
assess supplier and bottler compliance.
Rights Policy. We communicate these
Achievements, lessons and
Assessments include confidential
improvements expectations through our Supplier
interviews with employees and on-site
Guiding Principles (SGP). The SGP are
Stakeholder engagement, contract workers. Our audit guidelines
collaborations and memberships aligned with our Human Rights Policy and
thereby require auditors to select
employees from different production
lines and duties within the facility;
employees of different genders, ethnic
or religious backgrounds; employees
who appear very young; employees who

Our Supplier are pregnant; union representatives,

Guiding Principles: when available; and contingent

workers. Protection of the workers in
Freedom of association and
the process is of utmost importance.
collective bargaining
Worker participation in interviews is
Prohibit child labor
voluntary, and the interviews are strictly
Prohibit forced labor and abuse of labor confidential with no reference to the

Eliminate discrimination employee’s name when findings are

disclosed to management. Interviews
Work hours and wages
are conducted in a private location
Provide a safe and healthy workplace that guarantees separation from
Protect the environment management influence. Furthermore, all
documentation is destroyed away from
Business integrity
the facility location.
Grievance procedure and remedy

Management systems for ensuring lawful If a supplier or bottler fails to uphold

compliance and respect for all human rights. any aspect of the audit requirements,
implementation of corrective actions is
Supplier Guiding Principles
required.

12
 New suppliers must demonstrate
compliance to SGP prior to their Compliance of direct, authorized
suppliers, bottlers and company-owned
authorization as an approved supplier.
facilities with the Human Rights Policy and
Human Rights Report The Company reserves the right to the Supplier Guiding Principles
2016-2017 terminate an agreement with any
supplier unable to demonstrate SGP 92%
Table of contents 90% 90% 86% 81%
requirements abidance. However, this 73%
63%
Foreword by James Quincey
should be considered a last resort.
The Coca-Cola Company at a glance Walking away from issues does not
ultimately solve the problem or improve
The global human rights context
the situation of affected communities
The Coca-Cola Company’s Human
and stakeholders. Instead, aligned with
Rights Policy 2016 2015 2014 2013 2012 2011 2010
the UN Guiding Principles, we aim to
Embedding our commitments into build leverage with other major buyers
governance
to increase the pressure on suppliers
Oursupply
Our supplychain
chain matters
matters to engage. An example where we have

Salient human rights risks implemented this approach is with Usina

Trapiche, a sugar mill on the coast of
Access to remedy with a multi-stakeholder audience on an
Pernambuco in northeastern Brazil.
Oxfam-led panel at the UN Forum on
Achievements, lessons and Since 1998, it has been embroiled in
improvements
Business and Human Rights in November
conflict with local fishing communities
2016. More information can be found
Stakeholder engagement, over the control of nearby islands and
here. However, building leverage and
collaborations and memberships
contamination of the estuary. Usina
triggering change does not happen
Trapiche is a supplier to a Coca-Cola
overnight and requires engagement,
bottler and other major brands. In 2016,
persistence and vision.
working with Oxfam, we have been
engaged with a coalition of buyers to Since inception of our SGP program, we
strengthen leverage for engagement. The have collaborated with our bottling and
Global Workplace Rights Director of supplier partners to complete more than
The Coca-Cola Company reported on 20,000 human and workplace rights
these efforts and discussed the case audits. Although our values have

Number of audits of suppliers, bottlers

and company-owned facilities per region

1,207

705

339

188
180
93 77

Africa Eurasia Europe Latin America North America Pacific MENA

Number of audits in 2016

Total: 2,789

13
 remained the same, our program has The top 10 findings in our
evolved for continuous improvement. audits of direct, authorized suppliers,
In 2014, for instance, we enhanced our bottlers and own facilities in 2016

Human Rights Report audits with regard to the recruitment

2016-2017 and employment practices for migrant Excessive Overtime 14%

workers and protecting the land rights of

Table of contents
local communities. Overtime Not Properly
7%
Foreword by James Quincey Compensated

We not only request compliance with our

The Coca-Cola Company at a glance
SGP, but also provide training programs Equipment Does Not Meet
5%
The global human rights context Legal Safety Requirements
and guidance on their implementation.
The Coca-Cola Company’s Human We have developed guidance on specific
Rest Day Not Provided 5%
Rights Policy topics to support our supplier partners

Embedding our commitments into to uphold the values outlined in the SGP.
Inadequate Worker Safety
governance Our Issue Guidance document provides 5%
Training

Oursupply
Our supplychain
chain matters
matters additional guidance on challenges which,
to date, include land rights, HIV/AIDS Unhealthy Workplace
Salient human rights risks
and pregnancy testing, and migrant Conditions in Violation of 5%
Local Law
Access to remedy worker recruitment and employment
practices. The intent is to provide
Achievements, lessons and Blocked or Locked
improvements background information on the issue and Emergency Exits
4%

for the expectations to comply with SGP.

Stakeholder engagement,
collaborations and memberships In 2016, the Global Workplace Rights Mandated Benefits Not
team provided 40 SGP-related training Provided to 10% or More of 4%
Workers
programs to bottlers, suppliers and
auditors across the world.
No Functioning Fire Alarms 4%

The Coca-Cola Company is a leading

member of AIM-PROGRESS, a forum No Emergency Lighting 3%

of 45 fast-moving consumer goods

manufacturers and suppliers working All identified non-compliance is addressed
together to promote responsible through a corrective action plan within an
sourcing practices. Member companies agreed-upon time frame. The corrective action is

recognize supplier audits completed on tracked and may require a re-audit to determine
if improvement has occurred.
behalf of another company, benchmark
Number of human rights training
programs facilitated by the Global best practices and collaborate to jointly
Workplace Rights team for bottlers, deliver supplier training programs
suppliers and auditors in 2016
around the world.
16
The training programs cover the four Overall, AIM-PROGRESS has organized
11
9 major pillars of responsible sourcing: more than 20 such sessions globally,
4 reaching more than 2,500 people.
human rights and labor standards,
health and safety, environmental
Africa Asia/ Central Latin
Pacific Asia /
MENA
America compliance and business integrity. Over Our agricultural
the last few years The Coca-Cola Company supply chain
co-hosted events in collaboration with A huge focus in our supply chain work
other AIM-PROGRESS members in is related to our agricultural ingredients.
Bangkok, New Delhi, Dubai, Nairobi, This is an area where we have assessed
Johannesburg, Lagos and Istanbul. greater risks as we work to gain a

14
 higher level of transparency across our
supply chain. We rely on more than 5
million farmers to deliver our agricultural

Human Rights Report supply. In view of this importance,

2016-2017 The Coca-Cola Company has developed
a set of specific Sustainable Agriculture
Table of contents
Guiding Principles (SAGP), which
Foreword by James Quincey
set expectations of our agricultural
The Coca-Cola Company at a glance ingredient suppliers, to address
sustainability challenges specific to
The global human rights context
agriculture. The SAGP expand on the
The Coca-Cola Company’s Human
SGP and provide targeted guidance to
Rights Policy
our suppliers of agricultural ingredients.
Embedding our commitments into They cover the following areas:
governance
• Freedom of association and collective
Our supply chain matters
bargaining
Salient human rights risks
• Prohibit child, forced or abuse of
Access to remedy labor

Achievements, lessons and • Eliminate discrimination

improvements
• Work hours and wages
Stakeholder engagement,
collaborations and memberships • Safe and healthy workplace

• Community and traditional rights priority ingredients are cane and beet
sugar, high fructose corn syrup, stevia,
• Water management
tea, coffee, oranges, lemons, grapes,
• Energy management and climate apples, mangos, pulp and paper fiber for
protection packaging, palm oil and soy.
• Conservation of natural habitats and
The agricultural supply chain, from farm
ecosystems
to finished ingredient, is complex and
• Soil management every commodity is different. We’re
• Crop protection working to engage and enroll smallholder
farmers, including women, in our efforts
• Harvest and postharvest handling
toward improved sustainable sourcing
• Reproductive material identity, consistent with the Company’s SAGP. We
selection and handling have convened numerous workshops in
• Management systems, record keeping regions around the world to help educate
and transparency stakeholders across our agricultural
supply chain, including bottlers,
• Business integrity
suppliers, farmers and others to drive
Sustainable Agriculture Principles implementation against our 2020 goal.
with Criteria
Sugar update
The SAGP establish the framework for
defining our commitment to sustainable Through global sourcing efforts, in
sourcing, in which we have committed collaboration with bottling partners,
to more sustainably source our priority Coca-Cola sourced more than 1 million
agricultural ingredients by 2020. These tons of more sustainable sugar in

15
 2016. This achievement positions Supporting Transformational Change.
The Coca-Cola Company at an estimated The award recognizes the
15-20 percent toward the Company’s Coca-Cola system’s efforts to support

Human Rights Report goal to sustainably source our sugar by critical and progressive advancements in
2016-2017 2020. Coca-Cola anticipates doubling the sugarcane sector.
the amount of sugar it sustainably
Table of contents
sources over the next year. Bonsucro Coffee and tea update
Foreword by James Quincey
certification is The Coca-Cola Company’s More than 95 percent of the sourced
The Coca-Cola Company at a glance preferred method for sugarcane mills coffee and tea in 2016 have met at
and growers to demonstrate compliance least one of the Company’s required
The global human rights context
with the Company’s SAGP. Coca-Cola sustainable sourcing standards,
The Coca-Cola Company’s Human
worked with Bonsucro members to with the majority adhering to the
Rights Policy
create the first global metric standard Company’s SAGP. This means that
Embedding our commitments into for sustainable sugarcane production Coca-Cola is purchasing these products
governance
and was the first to purchase Bonsucro- from farm locations and suppliers that
Oursupply
Our supplychain
chain matters
matters certified sugar in 2011. The Company also meet one of the following standards:
Salient human rights risks achieved Bonsucro Chain of Custody Ethical Tea Partnership, Rainforest
Standard certification, which enables Alliance, UTZ, Fairtrade, SAI Platform,
Access to remedy
the tracking of claims on the sustainable 4C*, or SAGP audit or validation.
Achievements, lessons and production of Bonsucro sugarcane and Coca-Cola prefers and encourages
improvements
all sugarcane-derived products along suppliers to strive for SAGP, which,
Stakeholder engagement, the entire supply chain. In October among other things, set standards to
collaborations and memberships
2015, Coca-Cola received the 2015 be met by farm suppliers for human
Bonsucro Sustainability Award for Buyers and workplace rights, environmental
protection and responsible farming
management.

Through Project Catalyst, a collaboration

among Coca-Cola, World Wildlife Fund
(WWF), natural resource management
groups Reef Catchments, Terrain, NQ Dry
Tropics and the Australian government, Ger-
ry Deguara and a group of fellow landhold-
ers are developing and testing progressive
farming practices to improve the quality of
water runoff to the Great Barrier Reef.

16
 Fruits update mango and passion fruit farmers in
Uganda and Kenya and help them
Coca-Cola estimates to have reached 54
connect into Coca-Cola’s supply chain.
percent of our goal to more sustainably
Human Rights Report source our lemon by 2020. Half of
We are cooperating in our agricultural
2016-2017
Coca-Cola’s lemon is sourced from
supply chain work with other
Table of contents Argentina, with 90 percent of the
organizations and institutions, such as
country’s supply for Coca-Cola
Foreword by James Quincey the World Wildlife Fund (WWF). One
sustainably sourced. Citrus and
project with WWF, which began in
The Coca-Cola Company at a glance
mango are the major fruit areas of
2013, has included working together
The global human rights context focus in Africa, where Coca-Cola is
with Cargill in China to help 26,000
supporting economic development
The Coca-Cola Company’s Human corn grower smallholdings expand
Rights Policy through Source Africa, an initiative to
their livelihoods through training. With
advance sustainable and financially
Embedding our commitments into the International Finance Corporation
governance viable supply chains of key Coca-Cola
(IFC), we are working together to assist
agricultural ingredients. Source Africa
Oursupply
Our supplychain
chain matters
matters sugarcane farmers in India to address
builds on Coca-Cola’s successful Project
the challenges of soil well-being,
Salient human rights risks Nurture, a partnership with nonprofit
reducing the cost of cultivation, and
TechnoServe and the Bill & Melinda
Access to remedy addressing the challenges of poor yields.
Gates Foundation, to double the
Additionally, with Technoserve, we have
Achievements, lessons and
average income of 50,000 small-scale
improvements supported capability building of mango
farmers in India and Haiti and women
Stakeholder engagement,
collaborations and memberships coffee growers in Colombia.

Also in 2016, we conducted third-party

due diligence studies focused on child
and forced labor, and land rights related
to our sugar supply chain. We placed
these studies on the Coca-Cola Global
Workplace Rights page. Our studies
Sourcing map
focus on sugar because it is one of the
We are transparent about our biggest commodities we source. More
supply chain as well as our risks and information on the sugar studies and our
successes. In 2016, we launched an agricultural
follow-up is included in the next chapter
ingredients Sourcing Map.
on salient human rights risks.

The map:
• Provides information on 11 of our top agricultural ingredients

• Reflects more than 90 percent of supply for ingredients shown

• Links to dozens of stories that describe how we are

promoting more sustainable agriculture practices through
partnerships looking to reduce post-harvest loss,
improve efficiency in water use, promote sustainable
livelihoods for farmers, enhance skills and capabilities
for women farmers, tackle child labor in
agriculture and improve
land management

17
 Case study on collaboration to improve the
livelihoods of India’s Mango Farmers

Human Rights
Human Rights Report
Report
With the Ford Foundation and TechnoServe, an approach to improve traceability by
2016-2017
2016-2017
we are working to improve the livelihoods formalizing existing, informal aggregation
Table of
Table of contents
contents of India’s mango farmers. A typical roles in the supply chain. To track
Foreword by
Foreword byJames
James Quincey
Quincey smallholder mango farmer in India earns performance, a random sampling of farmers
between just $4 and $16 per day. One of in the sourcing geography was examined
TheCoca-Cola
The Coca-Cola Company
Company at
at aa glance
glance
the reasons is they have trouble accessing to assess the adoption of sustainable
The global
Thehuman rights context
international stable, profitable markets for their crops. practices.
human rights context
The Coca-Cola Company’s Human At The Coca-Cola Company, we view
While we are working with our India
Rights Policy
Starting point smallholder sourcing as an important part
mango puree supplier and farmers to
Embeddingour
Embedding our commitments
commitments into
into of our long-term goals; beyond its potential
close the identified gaps in 2017, the
governance
governance to generate significant social impact,
strategy development has already yielded
improved smallholder sourcing also benefits
Our
Oursupply
Our supplychain matters
chain matters
matters important lessons applicable to other
Coca-Cola’s license to operate and provides supply chains and in other regions:
Salienthuman
Salient human rights
rights risks
risks
greater stability in supply. Our challenge
Access to remedy
Access remedy when working with smallholder fruit farmers • Companies must be aware of the

is the supply chain is fragmented, with numerous risks—including financial and

Achievements, lessons,
Achievements, lessons and
and
improvements
improvements limited farmer participation in cooperatives climate-related factors—that smallholder

and other formal structures that would farmers face. As a result, priority should
OurStakeholder
stakeholderengagement,
engagement,
make it easier to promote the principles. be placed on promoting practices that
collaborations and
collaborations and memberships
memberships
Moreover, the supply chain lacks traceability reduce farmer vulnerabilities. It may not

and transparency. And, the existence of be effective to promote a full suite of

numerous sales channels, such as the fresh sustainability practices with smallholder

fruit market, means that processors have farmers, at least not all at once.

limited influence over farmers.

• Efforts to promote sustainable practices

To address this challenge, together with cannot be carried out in isolation. They

TechnoServe and one of our lead mango must be coupled with initiatives to

puree suppliers in India, we identified gaps reduce external risk factors—such as

in sustainable production practices climate change and demand volatility—

among Indian smallholder mango that threaten farmer livelihoods.

farmers. Coca-Cola and TechnoServe then

By approaching smallholder sourcing in
developed an approach to promoting
this way, companies can comply with their
practices to close those gaps and improve
sustainability guidelines while also creating
farmer resiliency.
stable market opportunities for farmers

First, we designed a farmer field school who would not otherwise have them. The

curriculum focused on safe and optimal full case study is available here.

application of crop protection, efficient

water management, sustainable soil
management, crop maintenance, harvest
and post-harvest handling practices and
proper record keeping. We also designed

18
 CHAPTER 6:

Human Rights Report

Our salient human rights
2016-2017

Table of contents risks, how have we identified

Foreword by James Quincey

The Coca-Cola Company at a glance and responded to them

The global human rights context

The Coca-Cola Company’s Human

Rights Policy
As a result of our internal and The UNGP Reporting Framework
Embedding our commitments into
external consultation process, we encourages companies to focus their
governance
human rights disclosure on “the most
identified the following 13 salient
Our supply chain matters severe actual and potential impacts on
human rights issues associated
human rights associated with their activities
Salienthuman
Salient human rights
rights risks
risks
with the Company’s activities and and business relationships.” These risks are
Access to remedy business relationships: called a company’s salient human rights
Achievements, lessons and risks. Between 2015 and 2017, we focused
improvements on identifying the possible human rights
 Safety and health of all workers/
Stakeholder engagement, security/right to life risks in our Company and value chain. With
collaborations and memberships Shift, we began mapping and prioritizing
 Equality/nondiscrimination and our human rights risks according to scale,
related issues/risks
scope and ability to remediate, which were

Child labor then discussed and evaluated in workshops


with participants from all functions across
 Forced migrant labor/forced four continents, involving more than 180
labor of seasonal workers experts. The risk ranking that resulted from
these workshops was further discussed in a
 Freedom of association
broad consultation process with more than

 Access to water 57 civil society groups, including NGOs,

socially responsible investors, Global Union
 Working hours Federations and many others. To ensure a
broad variety of stakeholders participated
 Healthy lifestyles
openly in this engagement, the consultation
 Land rights process was conducted and led by Bennett
Freeman, a consultant and speaker on
 Product safety/quality business and human rights, sustainability
and responsible investment.
 Rights linked to sponsorships

These salient issues are not new for us.

 Right to privacy
Although the Company has engaged in all
these topics, our extensive mapping and
consultation process confirmed that much
of our human rights focus is appropriate,
equipping us to move in a more strategic

19
 “Following its own internal consultations regional and global context; and second,
with company business leaders plus top sharing the company’s draft revisions in its
Human Rights
Human Rights Report
Report bottlers and suppliers around the world, The current Human Rights Policy and requesting
2016-2017
2016-2017
Coca-Cola Company asked me to undertake reactions to its substantive commitments
Table of
Table of contents
contents an independent consultation with key and specific line-by-line language.  I then

Foreword by
Foreword byJames
James Quincey
Quincey
stakeholders and experts on business and presented to the company detailed summaries
human rights. The consultation engaged a of what the stakeholders and experts told
TheCoca-Cola
The Coca-Cola Company
Company at
at aa glance
glance
global sample of 63 individuals representing us—anonymously and candidly—with respect
The global
Thehuman rights context
international 57 organizations whose work touches human both to the salient issues and the policy
human rights context
rights issues related to the Company’s commitment. I also presented a further revised
The Coca-Cola Company’s Human
Rights Policy
Starting point global value chain including workers and version of the Human Rights Policy, reflecting
communities, land and water, and public both the views of those consulted and my own.  
Embeddingour
Embedding our commitments
commitments into
into
governance
governance health. I consulted stakeholders and other
The Coca-Cola Company’s mandate for
experts in the United States, the United
Oursupply
Our supply chain
chain matters
matters the exercise was clear: to consult widely
Kingdom, Europe, South Africa and India; and
Salienthuman
human rights
rights risks and openly; to report back diverse views;
Salient
Salient risks
risks our partner, Business for Social Responsibility
and to recommend revisions in the policy
Access to
Access to remedy
remedy (BSR), consulted stakeholders in Brazil, Japan,
reflecting global perspectives. That is what
Hong Kong and China.
Achievements, lessons,
Achievements, lessons and
and I tried to do, and I was impressed by the
improvements
improvements
These meetings shared a consistent dual focus: company’s receptivity to what was reported
OurStakeholder
stakeholderengagement,
engagement, first, sharing with stakeholders and experts and recommended. The Coca-Cola Company
collaborations and
collaborations and memberships
memberships
The Coca-Cola Company’s internal assessment understands that its human rights
of its most salient human rights risks and commitments must be steadfast but not static
seeking reactions to those issues in both a in a dynamic world.”

BENNETT FREEMAN, PRINCIPAL, BENNETT FREEMAN ASSOCIATES LLC; FORMER

SENIOR VICE PRESIDENT FOR SUSTAINABILITY RESEARCH AND POLICY, CALVERT
INVESTMENTS; AND FORMER DEPUTY ASSISTANT SECRETARY OF STATE FOR
DEMOCRACY, HUMAN RIGHTS AND LABOR  

and prioritized direction in addressing these Safety and health of all

issues. In addition, the regional consultations workers/security/right to life
gave us a deeper view into regional risks Our Human Rights Policy reflects our
profiles. The consultations also raised the commitment to take responsibility for
awareness of colleagues on these issues and maintaining a productive workplace by working
strengthened engagement on tackling salient to minimize the risk of accidents, injury and
human rights risks. exposure to health risks for all of our associates
and contractors. Please see more here.
In the following section, we talk briefly about
each of these issues. Before that, however, Occupational Safety and Health is also a key
we describe how we track performance, as area of our engagement with our supply
this approach applies to most of the salient chain and focuses on enabling services,
human rights risks. building capabilities, technical governance

20
 and policy. Our supply chain governance • Kenya
audits cover 22 Company safe and healthy • Mexico
workplace conditions and behavior facets • Morocco

Human Rights Report (KORE Company Requirements), and we • South Africa

2016-2017 have substantially engaged in training and • Thailand
capability building across our supply chain. • Turkey
Table of contents
• United States of America
Foreword by James Quincey In addition to audits, the Company
• United Arab Emirates
has invested significantly in building
The Coca-Cola Company at a glance • Vietnam
capabilities and understanding of risks
The global human rights context
and opportunities across our system by We place a strong emphasis on mitigating
The Coca-Cola Company’s Human conducting various multi-geography behaviors and conditions that contribute
Rights Policy safety workshops. The Company has to serious workplace injuries. In 2015,

Embedding our commitments into conducted 23 health and safety workshops we conducted a thorough analysis of
governance on both manufacturing and fleet safety in contributing factors to serious injuries

Our supply chain matters the following countries from 2014 to 2016: and incidents, and took global action
with our supply chain to address any
Salienthuman
Salient human rights
rights risks
risks • Australia
causal factors that may exist. As a result,
• Azerbaijan
Access to remedy The Coca-Cola Company and Coca-Cola
• China
system bottlers have seen a 21 percent
Achievements, lessons and
• Costa Rica
improvements reduction in serious incidents and injuries
• Ecuador
and are experiencing an all-time low in
Stakeholder engagement,
• Ghana
collaborations and memberships Lost Time Incident Rates (LTIR).
• India
• Indonesia We have also undertaken efforts to
• Italy improve the safety culture, based on
global assessments completed in 2015
and workshops that occurred in 2016. In
addition to understanding our safety culture,
we developed a Behavior Based Safety
Observation (BBS) program for our system
How do we track
and supply chain to adopt into operations.
performance related to our The BBS program incorporates Human
salient human rights risks? Factor Analysis and Classification System
(HFACS), which takes a deep look at why
It is important for us to have a clear understanding how
we, as a company, as well as our bottlers and suppliers, injuries occur and analyzes the multi-causal

perform related to the identified salient human rights risks. influencers existent in the management
Audits give us the compliance rate for workplace-related system that support at-risk behaviors.
human rights, which is discussed at the board level on a Although early in the implementation, this
biannual basis. Through our risk management system, method is proving successful and being
each serious incident is escalated directly to the global replicated in multiple geographies.
level, where it is tracked and follow-up is monitored. These
systems are complemented through an ethics hotline, Of particular concern for us is the Route-to-
which provides data on complaints within the Company, Market (RTM) segment of our value chain.
and data from our human rights and workplace RTM encompasses the downstream storage
rights managers in the field across the globe. and distribution of our product, and any
These managers monitor compliance at the movement of employees and contractors
regional level and have great insight into along public roadways. Product distribution
the regional specificities, challenges
often involves a very complex chain of
and performance.
events that vary throughout the world
based on local market, socio-economic,

21
 and infrastructure factors. Large and small Equality/nondiscrimination
trucks, three- and two-wheeled motorized
and related issues/risks
vehicles, as well as bicycles, carts and small
Living in a rapidly evolving world, we
Human Rights Report boats are used in the distribution process.
must understand the societal trends
2016-2017
Operating safely in the public remains a top and dynamics that will shape our future
Table of contents
priority for the Coca-Cola system. Proactive workforce and move swiftly to prepare for
Foreword by James Quincey safety processes that emphasize situational that future. Gender parity, social injustice,
awareness and attention to detail are critical LGBTQ rights and immigrants’ rights are
The Coca-Cola Company at a glance
to ensure we are doing everything we can to just some of the social complexities that
The global human rights context impact our workforce. As the world’s
avoid RTM collisions and incidents. Therefore,
The Coca-Cola Company’s Human bottling partners continue to place intense largest beverage provider, with operations
Rights Policy emphasis on the route risk assessments and spanning more than 200 countries and

Embedding our commitments into comprehensive, defensive driver training. 700,000 system employees, we must
governance This aids our drivers with awareness of the ensure respect for diversity to navigate
identifiable risks they may encounter and the these complexities.
Our supply chain matters
understanding of how to avoid a collision or
Salienthuman
Salient human rights
rights risks
risks The Company is committed to
incident. Bottlers also continue to engage
diversity and inclusion. We work to
Access to remedy in community outreach to influence at-risk
maintain workplaces that are free from
behaviors observed by the public at large.
Achievements, lessons and
discrimination or harassment on the
improvements For example, one of our African bottlers,
basis of race, sex, color, national or social
Carlsberg Malawi, recognized one of the
Stakeholder engagement, origin, ethnicity, religion, age, disability,
collaborations and memberships greatest risks in their delivery routes was
sexual orientation, gender identity or
reckless bicycle riders. The bottler funded a
expression, political opinion or any other
bicycle safety awareness program, including
status protected by applicable law. The
awareness facilitators and a mobile video van
basis for recruitment, hiring, placement,
that went into the public and provided safety
development, training, compensation
training for cyclists.
and advancement at the Company is
On our journey of continuous safety qualifications, performance, skills and
improvement, the Coca-Cola system has experience.
made notable progress, realizing year-
We have developed a vision, mission and
over-year improvement in our occupational
strategic pillars to frame our diversity and
safety performance.
inclusion efforts:

• Vision: Be as inclusive and diverse as

LTIR Trend for The Coca-Cola Company our brands, unleashing the power of
and Coca-Cola system bottlers perspectives within our associates
4 to drive innovation and sustainable
3.25
system growth.

3 • Mission: Mirror the richly diverse

2.49
2.37 markets we serve, capitalizing on our
2.07 2.00
2
1.67 inclusive culture to attract, develop,
1.38
engage and retain a global talent mix
1 to fuel our competitive advantage.

• Strategic Pillars: Workplace,

Marketplace, Communities and
2010 2011 2012 2013 2014 2015 2016
Partners.
LTI Rate by Year

22
 We drive and sustain our diversity and • The Multicultural Leadership Council,
inclusion efforts by: which is U.S.-based, has a laser-

• Engaging leaders to drive commitment. focused objective to accelerate

Human Rights Report the development and movement

• Empowering our cultural champions to
2016-2017 of multicultural talent into roles of
drive our inclusive culture.
Table of contents
increasing responsibility and influence.
• Embedding practices, programs and
Foreword by James Quincey
• The Millennial Voices Leadership
processes across our system.
Council, which is U.S-based, is a
The Coca-Cola Company at a glance • Consistently measuring our progress. diverse group of young employees
The global human rights context The Coca-Cola Company has established who provide thought leadership on
a wide range of monitoring and reporting how best to attract and retain the next
The Coca-Cola Company’s Human
Rights Policy metrics to ensure fairness in our generation of talent.
employment-related decisions and to
Embedding our commitments into
governance support our diversity and inclusion initiatives. Business Resource Groups

In order to better embed our diversity

Our supply chain matters
Driving an inclusive culture and inclusion strategy into the daily
Salienthuman
Salient human rights
rights risks
risks
Our diversity councils, Business Resource experience of our employees, we have
Access to remedy Groups and diversity listening sessions established seven Business Resource
continue to be a driving force in shaping our Groups (BRGs), which include 50
Achievements, lessons and
improvements inclusive culture, advancing diverse talent local U.S. chapters and represent
and providing added value as a resource to approximately 6,000 members. These
Stakeholder engagement,
collaborations and memberships the business. employee-led, volunteer groups engage
in diversity and inclusion priorities across
We have the following Diversity Councils: our pillars of Workplace, Marketplace,
• The Global Women’s Leadership Council, Community and Partners. They also
which is comprised of influential, enable associates to participate in
passionate, female executives from professional and personal growth
across the global business, develops opportunities through training and
recommendations and advises senior education, community projects,
management on global strategy, initiatives networking events, cultural heritage
and metrics in pursuit of its stated month celebrations, project assignments
objective of advancing female talent.

23
 and management opportunities. We have
the following Business Resource Groups:

• African American Business Resource

Human Rights Report Group
2016-2017
• Asian Business Resource Group
Table of contents
• KO Gen Business Resource Group
Foreword by James Quincey
• Hispanic Leadership Business Resource
The Coca-Cola Company at a glance Group

The global human rights context • Lesbian, Gay, Bisexual, Transgender and
Allies (LGBTA) Business Resource Group
The Coca-Cola Company’s Human
Rights Policy • Military Veterans Business Resource Group

Embedding our commitments into • Women’s Business Resource Group

governance
Using our voice on diversity and
Our supply chain matters
inclusion issues
Salienthuman
Salient human rights
rights risks
risks
As a business, it is our role and our
Access to remedy responsibility to ensure that we embrace
human rights practices in our own
Achievements, lessons and
improvements workplaces. It is also appropriate for us
• Immigration Reform: In January 2017,
to help foster diversity, tolerance, unity
Stakeholder engagement,
the Company issued a public statement
collaborations and memberships and respect among all people. We have
opposing the Executive Order banning
demonstrated our values around diversity
travel to the United States by citizens
and inclusion through:
of seven countries – Iran, Iraq, Sudan,
• Marriage Equality: In 2015, Syria, Somalia, Libya and Yemen. As a
The Coca-Cola Company joined nearly company that values associates of all
400 businesses that expressed support nationalities, we do not support anything
for marriage equality to the U.S. that goes against our core beliefs of
Supreme Court, as laws that prohibited diversity, respect, fairness and inclusion.
same-sex marriage hamper businesses’
ability to recruit and retain the most Public commitments of
talented workforce possible. The success The Coca-Cola Company
of our business is directly linked to the CEO Action for Diversity and Inclusion Pledge:
diversity of our associates as well as our In June 2017, The Coca-Cola Company
consumers. joined more than 170 other companies in
signing a pledge to continue cultivating
• Legislation: Since 2014,
workplaces that support open dialogue,
The Coca-Cola Company has spoken
expand unconscious bias education and
out publicly against proposed state-
share best practices.
level legislation in the United States that
would allow for discrimination against Catalyst CEO Champions for Change: This
the LGBT community. We have long initiative brings together CEOs and senior
been a strong supporter of the LGBT leaders who are visibly supporting and
community, and for 11 consecutive years, driving diversity, inclusion and gender
we have received a perfect score on equality within their organizations. In
the Human Rights Campaign’s annual March 2017, more than 40 high-profile
Corporate Equality Index. CEOs and top industry leaders, including

24
 The Coca-Cola Company, pledged to chains, such as at the farm level. There
continue driving change for gender is also a risk of child labor further
equality in the workplace. Please read downstream; for example, at points of

Human Rights Report more here. recovery of recyclable materials.

2016-2017
The Women’s Empowerment Principles Our Company does not typically purchase
Table of contents
(WEPs): This is a joint initiative of UN ingredients, such as sugar, directly from
Foreword by James Quincey Women and the UN Global Compact. WEP farms, nor are we owners of sugar farms or
was launched in 2010 on International plantations, but as a major user of sugar
The Coca-Cola Company at a glance
Women’s Day, following a year- and other agricultural ingredients, we are
The global human rights context
long international, multi-stakeholder taking action and using our influence to
The Coca-Cola Company’s Human consultation process. It elaborates on help end child labor in sugarcane fields
Rights Policy the gender dimension of good corporate and along our supply chain. To address

Embedding our commitments into citizenship, the UN Global Compact and the issue, we collaborate with suppliers,
governance business’ role in sustainable development. industry groups and local stakeholders.

Our supply chain matters Please read more here. In recent years, we joined collaborative
efforts in several countries. More
Salienthuman
human rights
rights risks
Salient risks Reacting to increased tension: ‘We information can be found here.
Access to remedy Stand As One’ listening sessions and
circles The Coca-Cola Company is a member of
Achievements, lessons and
In 2016, during a time of increased the Child Labor Platform (CLP). Under
improvements
tension in the United States, we created the leadership of the International Labor
Stakeholder engagement,
an environment for our U.S.-based Organization (ILO), the International
collaborations and memberships
associates to openly talk about race and Organisation of Employers (IOE) and the

other diversity topics at work. The open International Trade Union Confederation

dialogue continues today under our unity (ITUC), and in a multi-stakeholder

mantra of ‘We Stand As One.’ Launched approach, the CLP aims to identify the

to send a message of unity, optimism and obstacles to the implementation of the

inclusion to our Coca-Cola family and ILO conventions in supply chains and

communities, it has become a platform for surrounding communities, identify practical

us as we evolve to inclusive diversity. ways of overcoming these obstacles, and

catalyze collective action. More here.
To learn more about our journey to
inclusive diversity, please visit our website. Contributing to the advancement
WE LIVE of our longstanding commitment to
AS MANY. Child labor drive transparency, accountability and
sustainability throughout our business
WE STAND Child labor is a severe human rights
and supply chain, we have developed and
AS ONE. violation. In addition to concerns about
published a number of third-party studies
physical strain, children who work
of our top sugar-sourcing countries. These
instead of attending school will always
studies address human-rights risks related
be at the margin of the labor market
to child labor, forced labor and land rights
and increasingly vulnerable to violence.
in our agricultural supply chain. In 2016
Subsequently, child labor has an impact on
and the first half of 2017, we published
society development as well. Our Human
studies from Brazil, Cameroon, Congo,
Rights Policy and SGP clearly prohibit the
Côte d’Ivoire and Gabon. Regarding
use of child labor. While we can ensure
child labor, the Company agreed with
child labor doesn’t exist in our Company-
the American Federation of Teachers
owned operations, we are aware there are
(AFT) to closely collaborate to identify
risks of child labor deep within our supply

25
 local stakeholders and on approaches to Mexico. More information on these cases
the remediation of child labor where it is and our remediation can be found in the
found (please find the agreement here). Access to remedy chapter of this report.

Human Rights Report In our audits of suppliers, bottlers and

The results of the studies provide a basis
2016-2017 Company-owned facilities, we had six cases
to engage with industry, government and
in 2016 in which workers were currently of
Table of contents
NGOs to mitigate human rights impacts, as
legal age but under age when hired.
Foreword by James Quincey needed. All studies are available publicly
on the Coca-Cola website. Moreover, in Q3 of 2017 we launched and
The Coca-Cola Company at a glance
published the sugar studies for Paraguay
The global human rights context A key result of these studies, relating to
and Bolivia. In Paraguay, researchers did
child labor in sugarcane production, is that
The Coca-Cola Company’s Human not observe children working during their
Rights Policy no systematic child labor was observed
visits to the mills and farms. Both mills
in sampled farms of the supply chain in
Embedding our commitments into in Paraguay have child labor policies.
governance Brazil, Cameroon, Colombia, Congo, Côte
However, in Bolivia, a researcher found 18
d’Ivoire, El Salvador, Gabon, Guatemala
Our supply chain matters children harvesting, despite the fact that in
or Honduras. There was one 16-year-old
the mills there were policies and concrete
Salienthuman
Salient human rights
rights risks
risks minor found cutting sugarcane, as well
plans of action for raising awareness,
as one other possible minor, which could
Access to remedy educating and training cane growers and
not be confirmed, in Guatemala. In these
sugarcane harvesters about child labor.
Achievements, lessons and
cases, we requested remediation. All
improvements We are currently collaborating with the
mills in our supply chain have policies in
mills to address these findings.
Stakeholder engagement,
place that meet international standards.
collaborations and memberships
The mills also prohibit hiring cane cutters
Forced migrant labor/
younger than 18 years of age. Although
forced labor of seasonal
these are encouraging findings, we are
workers
aware a high risk of child labor exists
Slavery and forced labor fundamentally
in these countries, and just because no
violate individual freedom and dignity.
systematic child labor was observed in
People in slavery and in all forms of forced
sampled farms, it does not mean we will
labor are kept in poverty and bound to
stop closely following possible child labor
dangerous and unacceptable working
in sugarcane production in these countries.
conditions. The Coca-Cola Company
There have been cases of child labor linked
determinedly prohibits the use of all forms
to the illegal appropriation of sugarcane
of forced labor, including prison labor,
in Colombia as well as to PET Recovery in

26
 indentured labor, bonded labor, military combating the exploitation of migrant
labor, slave labor and human trafficking. workers in global supply chains across
The Company also expressly prohibits any industries. The founding companies

Human Rights Report form of human trafficking within our system committed to the ‘Employer Pays Principle,’
2016-2017 or by any company that directly supplies or which states that no worker should pay
provides services to our business. for a job – the costs of recruitment should
Table of contents
be borne not by the worker but by the
Foreword by James Quincey Recruitment fees, which many migrant
employer. LGRR is supported by the
workers have to pay, are a major cause
The Coca-Cola Company at a glance Institute for Human Rights and Business
of forced labor. Recognizing that migrant
(IHRB), Interfaith Center on Corporate
The global human rights context
workers are particularly vulnerable to
Responsibility (ICCR), International
The Coca-Cola Company’s Human exploitation and human trafficking, we
Organization for Migration, and Verite.
Rights Policy recently enhanced safeguards related to the

Embedding our commitments into recruitment and employment practices of As an active member of The Consumer Goods
governance such workers. These safeguards were built Forum (CGF), The Coca-Cola Company

Our supply chain matters into our audit protocol, and we conducted supports and implements the CGF’s
supplier and auditor training sessions commitment on the eradication of forced
Salienthuman
Salient human rights
rights risks
risks
globally to familiarize these expectations. labor, which is based on the following
Access to remedy principles: Every worker should have
Collaborative action of the private sector
freedom of movement, no worker should
Achievements, lessons and
is key to achieving the necessary scale
improvements pay for a job, and no worker should be
and momentum to advance responsible
indebted or coerced to work.
Stakeholder engagement,
recruitment practices. In 2016, we
collaborations and memberships The Coca-Cola Company co-chairs the
collaborated with four other companies
work stream focused on implementing the
to launch the Leadership Group for
resolution among members. As part of
Responsible Recruitment (LGRR), focused
the implementation, we actively engage
on promoting ethical recruitment and
with suppliers and peers to promote
awareness of these principles. For instance,
in 2016, we partnered with peer companies
under the umbrella of AIM-PROGRESS to
deliver supplier training focused on ethical
recruitment. We co-sponsored supplier days
in Thailand in 2016, and Dubai in early 2017.
In 2017, the Company`s
These forums provide an opportunity for
Global Workplace Rights Director suppliers to hear from multiple customers,
Brent Wilton was recognized as a global leader share best practices and gain access to
on the Top 100 Human Trafficking & Slavery additional tools and guidance materials.
Influence Leaders List. This list recognizes leaders
Since the introduction of our ‘no
across government, civil society and the private
fees’ position, we have had success in
sector shaping the future of supply chain excellence
combatting recruitment fees in many
and corporate social responsibility on efforts to
markets, while other markets remain a
reduce human trafficking and slavery by increasing
challenge. In Qatar, for example, where
public awareness, advocating for supply chain
passport retention is routine and paying
education and helping companies fees is frequent, we have operations,
meet their responsible including a bottling plant, which we
sourcing goals. believe can be a positive example for
responsible business conduct in the
region. There, employees maintain their

27
 passports, workers do not pay recruitment
fees, salaries are paid directly to workers’
bank accounts, which avoids deductions
from intermediaries, and exit visas are
Please see also the
Human Rights Report
2016-2017 signed at the time of engagement. These Company’s report provided
processes were developed to align with under the UK Modern Slavery Act
Table of contents
our global policy. as well as under the California
Foreword by James Quincey
Transparency in Supply
In contrast, Taiwan remains a market
The Coca-Cola Company at a glance Chains Act.
where we know migrant workers face fees,
The global human rights context
including in our supply chain. In order to
The Coca-Cola Company’s Human address this, in 2016, we invited ICCR to
Rights Policy shadow two audits in the region to validate

Embedding our commitments into our process and provide constructive

governance feedback on opportunities to progress
allowed the mandatory rest days aligned
Our supply chain matters the dialogue locally. They found that
with Cameroonian law. In Côte d’Ivoire, the
many migrant workers experience a large
Salienthuman
Salient human rights
rights risks
risks study found that a subcontractor utilized
financial burden, in part because of the
by the mill was engaging in forced labor via
Access to remedy government-imposed requirements to
indebting migrant workers and withholding
take loans that secure return to their home
Achievements, lessons and
travel documents until the debt was
improvements countries. These government-imposed fees
repaid. The mill investigated the claims
create risks for workers, as they incentivize
Stakeholder engagement, and immediate remediation was taken.
collaborations and memberships illegal migration through unregistered
The travel and identity documentation
brokers who bypass government
was returned to the employees and the
regulations, placing many vulnerable
subcontractor received training to ensure
job seekers at risk for human trafficking.
full compliance and understanding of labor
Engagement with our industry peers will
laws and Company policy. In addition,
be critical to implementing the priority
in the Bolivia study, which launched and
principles in these types of challenging
published in Q3 of 2017, researchers found
markets. ICCR published a report, Best
situations of debt bondage. As is the case
Practice Guidance on Ethical Recruitment
of the discovered child labor in Bolivia,
of Migrant Workers, highlighting case
we are currently working with the mills to
studies related to good practices, including
address the findings. Moreover, the studies
reference to The Coca-Cola Company.
for all countries also found that most of the
Regarding the aforementioned sugar mills lacked appropriate formal procedures
due-diligence studies, despite the fact that to prevent or address instances of forced
forced labor continues to be a problem in labor in owned, leased or supplier farms.
the wider sugarcane sector, no systematic We will follow up on this issue.
forced labor was found in the mills or at
the farms in any of the nine countries at Freedom of association
the center of the studies, through the end Freedom of association and the right
of Q2 2017. However, in Cameroon there to bargain collectively are part of the
were issues found around overtime and International Bill of Human Rights and the
rest days. Some subcontracted workers International Labor Organization’s (ILO’s)
reported not being given rest days, despite Declaration on Fundamental Principles and
working seven days in a row. The mill Rights at Work. At The Coca-Cola Company,
addressed this issue with the relevant we respect our employees’ right to
subcontractor to ensure each worker is join, form or not join a labor union

28
 without fear of reprisal, intimidation federation of trade unions representing
or harassment. Where employees are workers in sectors including agriculture
represented by a legally recognized and plantations, food and beverages,

Human Rights Report union, we are committed to establishing and hotels, among others. The semi-
2016-2017 a constructive dialogue with their freely annual meetings, in addition to ongoing
chosen representatives. The Company is communications, provide a forum to
Table of contents
committed to bargaining in good faith discuss a variety of labor-relations matters.
Foreword by James Quincey
with such representatives. Similarly, our For us, this close contact is also a form of
The Coca-Cola Company at a glance SGP request suppliers and business due diligence – to understand problems at
partners to respect freedom of association a very early point in time and solve them
The global human rights context
and the right to bargain collectively. We at the most local level when possible.
The Coca-Cola Company’s Human
audit our suppliers and bottlers against James Quincey joined the meeting with
Rights Policy
these principles. Moreover, we have the IUF in May 2017, directly after he took
Embedding our commitments into developed extensive guidance on freedom over his new role as CEO of the Company,
governance
of association and the right to bargain demonstrating the importance our top
Our supply chain matters collectively to support our Business Units leadership places on meetings with the IUF.

Salienthuman
Salient human rights
rights risks
risks
in fully respecting these important rights.
Access to water
Access to remedy Of the more than 700,000 associates in the
Hundreds of millions of people do not
Coca-Cola system, more than 30 percent
Achievements, lessons and
have access to clean drinking water, and
improvements are unionized. At the global level, we meet
2.4 billion people lack access to basic
twice annually with the International Union
Stakeholder engagement,
sanitation services. At Coca-Cola, we
collaborations and memberships of Food and Allied Workers (IUF) and
respect the human and ecological needs
several of its affiliates (please find the
for water. As a beverage company, we
joint statement of the Company and
recognize the indispensable nature of
the IUF here). The IUF is a worldwide
water in advancing healthy ecosystems,
communities, business, agriculture and
commerce. We also are engaged in
internal and external discussions about
what it means in practice to respect the
In March 2017, the U.S. Water human right to water and sanitation.
Partnership (USWP) recognized Muhtar Kent, We understand our business activity
Chairman and then CEO of The Coca-Cola Company, might impact the access to water of
as the first-ever recipient of the U.S. Water Leader
local communities. We address this risk
Award for his visionary leadership and support for global
through our water stewardship program,
water security while head of the world’s largest beverage company.
through which we have implemented
The USWP’s rationale for recognizing Mr. Kent includes his a rights-based approach to water. We
demonstrated commitment to creating a sustainable water future for require our operations and bottlers to
all while leading The Coca-Cola Company. To date,
assess vulnerabilities to community water
The Coca-Cola Company, our foundations and bottling partners have
sources, determine potential impacts
invested more than $2 billion in safe water access, infrastructure,
restoration and education in communities and watersheds, in from our water use and discharge of
addition to installing wastewater treatment systems in nearly all treated wastewater, and then address
our plants globally. Mr. Kent was also credited for the Company’s potential issues.
ambitious goal to replenish the water used in our finished beverages
back to communities and nature. Coca-Cola reached this How does it work?
goal five years early in 2015 and continued to replenish
Our water stewardship outside our plants
100 percent of the water used in our finished
beverages in 2016. starts with people. Each of our system’s
more than 800 facilities is required to

29
 employ a rights-based approach to local Once an SVA is complete, the plant then
community water needs by determining develops a Source Water Protection
the possible impact of the facility’s water Plan (SWPP). Almost all of our system’s

Human Rights Report use on the community being able to facilities have started to implement
2016-2017 access a sufficient supply of water; the locally relevant SWPPs that detail specific
potential impact on communities from risk-mitigation actions to address the
Table of contents
the discharge of treated wastewater; vulnerabilities identified by the SVAs and
Foreword by James Quincey
and a program to remedy any impacts deadlines for completing them. When
The Coca-Cola Company at a glance identified. A similar approach is used in developing and implementing a SWPP, we
the due diligence process associated with engage the community, local government,
The global human rights context
new plant siting and expansions. civil society and other businesses to
The Coca-Cola Company’s Human
look for ways to collaborate. We believe
Rights Policy This detailed risk assessment is
this fosters greater transparency and
Embedding our commitments into complemented by a comprehensive
enables us to work together to address
governance source water protection plan program,
vulnerabilities that may exist, since
Our supply chain matters through which we also require each
concerns around water quantity and
operation to gain a clear understanding
Salienthuman
Salient human rights
rights risks
risks
quality are shared by all who rely on a
of where their water comes from, the
water source in a given area.
Access to remedy amount of water available, its quality,
water infrastructure condition and needs, SVAs inventory the social, environmental
Achievements, lessons and
improvements policies that govern water and more, all to and regulatory risks to the water
determine the current or future stress on sources supplying our facilities and the
Stakeholder engagement,
collaborations and memberships the water supply. This is part of a global surrounding communities to inform
requirement and formalized process to SWPPs. Plans concentrate on shared
responsibly manage water called Water challenges at the watershed level, from
Resource Sustainability. This first step, the hydrological vulnerabilities to local water
understanding, is called a Source Water management, and often are the basis for
Vulnerability Assessment (we refer to our community water projects aimed at
them as SVAs). protecting and improving water sources.

Beyond the SVAs and SWPPs, the Water

Resource Sustainability program requires
each production facility to:

• Form and train a water resource

management team that includes the
Our rights-based approach requires
plant manager, plant engineers, water
that our operations and bottlers:
resource expert(s), bottler and business
• Ensure manufacturing operations respect unit technical and public/government
and support the water rights of people, nature, affairs representatives
business and government
• Maintain and update the source
• Complete a basic assessment of the sustainability water protection plan with source
of the community’s source of water if the facility’s vulnerabilities on five-year intervals or
source of process water is different than the local sooner, as conditions warrant
community’s source
To date, this program has identified more
• Evaluate if the facility’s water use limits the than 3,700 mitigation actions, which are
availability of sufficient quantities of water and part of our system’s collective SWPPs. We
negatively impacts the quality of water for the continue to execute SVAs and implement
people in the local community

• Take actions to mitigate any adverse effects

30
 Best practice: RAIN — water for Africa

The Coca-Cola Africa Foundation (TCCAF) • Water for Productivity — RAIN’s

Human Rights
Human Rights Report
Report
2016-2017
2016-2017 introduced the Replenish Africa Initiative programs improve access to safe and
(RAIN) in 2009 in response to the water reliable water sources, which can save
Table of
Table of contents
contents crisis faced by nearly 300 million Africans. people time and create opportunities for
Foreword by
byJames
James Quincey RAIN is the most expansive corporate
Foreword Quincey income generation, such as by providing
water commitment in Africa, supporting
TheCoca-Cola
The Coca-Cola Company
Company at
at aa glance
glance
water for increased food security.
programs in 37 of Africa’s 55 nations. As
The global
Thehuman rights context
international TCCAF’s flagship program, RAIN is RAIN’s unique cross-sector partnership
human rights context The Coca-Cola Company’s contribution to approach is on pace to generate more than
The Coca-Cola Company’s Human
helping Africa achieve the United Nation’s
Rights Policy
Starting point US$100 million in co-investment from a
Global Sustainable Development Goals on
range of stakeholders across governments,
Embeddingour
Embedding our commitments
commitments into
into clean water and sanitation access.
governance
governance the private sector and civil society. Together
How RAIN works: with partners, RAIN ensures sustainable
Oursupply
Our supply chain
chain matters
matters
Harnessing Coca-Cola’s presence, change by working in geographies with
Salienthuman
Salient
Salient human rights
rights risks
risks
risks networks and engagements with diverse WASH sector momentum and potential for

Access to
Access to remedy
remedy
stakeholders, and working with more high-impact program.
than 140 best-in-class partners from
Achievements, lessons
Achievements, lessons and
and governments, the private sector and Key achievements:
improvements
improvements
civil society, RAIN tailors programs to Since inception, RAIN has:
OurStakeholder
stakeholderengagement,
engagement, each community. RAIN creates catalytic
collaborations and
collaborations and memberships
memberships change across the African continent by • Provided sustainable safe water access
building the capability of champions who for 2.5 million people
inspire the growth and development of
sustainable water and sanitation access. • Economically empowered more than

RAIN works under three main pillars: 22,000 women and youth

• Water for Heath — RAIN’s programs • Returned 8.9 billion liters of water back

improve access to safe water in to nature each year

communities to reduce the incidence

of waterborne diseases and eliminate
the dangers of retrieving water from
distant and inaccessible sources.

• Water for Education — RAIN improves

access to safe water, sanitation and
hygiene at schools to create healthy
learning environments for students.
Safe water access in schools helps
provide children more time and
improved health so they can spend
more time in the classroom.

31
 SWPPs in all facilities globally to address we are stepping into a shared environment.
water vulnerabilities. Through this Water is the ultimate common good
program we address manufacturing needs and, in any given location, all water users

Human Rights Report and growth issues in addition to issues share water supplies and have a shared
2016-2017 communities face. responsibility for their stewardship. As
such, we must partner with those water
Table of contents
Successes of our water users, including NGOs and other civil-
Foreword by James Quincey replenishment program society organizations that have an interest
The Coca-Cola Company at a glance We started our water replenishment in water. Not only must we partner but
program in 2005 and have been working we want to partner, as we believe collective
The global human rights context
with communities, governments and action results in greater impact. These
The Coca-Cola Company’s Human
respected third-parties to commission and partnerships always start with the local
Rights Policy
support projects that address local water community and government. Both are a
Embedding our commitments into needs, from safe water access to watershed critical part of any such water project’s
governance
protection and water for productive use. success. When choosing additional
Our supply chain matters In 2016, we continued to replenish 100 partners, we look for those that can bring

Salienthuman
Salient human rights
rights risks
risks
percent of the water used in our finished diverse perspectives, needed expertise
beverages back to communities and nature, and/or additional resources. Whether these
Access to remedy
a goal we first met in 2015. We also have partners are other industries, commercial
Achievements, lessons and safe water access projects in nearly 2,000 enterprises, farmers, academia, aid and
improvements
communities across the developing world, development organizations, or NGOs, we
Stakeholder engagement, helping provide nearly 3 million people with look for those with a vested interest in
collaborations and memberships
safe drinking water. More information here. the local challenges and a commitment to
building long-term solutions.
Our replenish progress is thereby based
on total replenish work globally. We are More information under: http://www.
replenishing at 100 percent or above coca-colacompany.com/water-stewardship-
in 12 of our 18 Business Units, including replenish-report and http://www.coca-
Brazil, Mexico, India, China and the colacompany.com/stories/our-position-
United States. In other markets, we are the-human-right-to-water-and-sanitation.
still working toward the 2020 goal to Moreover, under the following link we
replenish 100% of the equivalent water provide an interactive map that shows
we use back to communities and nature, how Coca-Cola is working to help ensure
and we are on track to meet it. the long-term availability of water: http://
www.coca-colacompany.com/watermap.
Two of our business units, Middle East &
North Africa and Southern & East Africa,
Working hours
while committed to water replenishment,
Compliance with local work hours and
face many challenges due to conflict,
overtime laws is a fundamental component
geopolitical and social issues.
of our Human Rights Policy and SGP. In
In select business units, where we addition to legal violations, excessive
haven’t achieved 100 percent, the overtime in the workplace can lead to
Company is working to replenish in key serious operational consequences and
areas where water stress is highest. disrupt employee work-life balance.
Reducing overtime may significantly
Working with others increase employee morale, decrease

When we step outside our direct quality incidents and reduce overtime

operations to engage on water challenges, labor costs, thereby improving business

32
 results and fostering a welcoming place • Lack of regular management oversight
to work. We have found that once and approval for the overtime that is
management understands the true costs being worked.

Human Rights Report related to overtime, they often choose to

• Staffing based on convenience rather
2016-2017 address the related issue proactively.
than need.
Table of contents
To help our bottlers and supply partners • Poor sales forecasting by customers
Foreword by James Quincey manage working hours issues, we sought and in planned promotions to drive
to first understand the root cause and sales by bottlers.
The Coca-Cola Company at a glance
help identify solutions toward win-win
The global human rights context There is no “one-size-fits-all” approach to
opportunities. In 2010, in a number of
The Coca-Cola Company’s Human countries, we carefully tracked overtime eliminate hours of work violations. However,
Rights Policy to identify overtime causes and then some key solutions were identified, including:

Embedding our commitments into developed a guidance document • Mapping production flow and
governance of practical strategies to reduce identifying bottlenecks.
Our supply chain matters overtime, along with real case studies
• Increasing manpower to cover peak
to demonstrate success is possible. No
Salienthuman
Salient human rights
rights risks
risks periods, vacations and other absences.
single cause was identified to explain the
Access to remedy presence of excess hours. However, some • Cross training to increase manpower
key drivers were identified, including: available for critical skills.
Achievements, lessons and
improvements
• Implementing absence controls.
• Lack of sufficient manpower to provide
Stakeholder engagement,
needed coverage. • Adjusting shift patterns and production
collaborations and memberships
floor layout to help reduce bottlenecks.
• Lack of manpower needed to cover
critical or high-skill operations, • Increasing inventory to help level
especially during periods of peak demands.
demand, vacation or absences (related • Educating managers and associates
to illnesses or other causes). concerning the legal restrictions and

• Lack of sufficient machinery, trucks or costs of overtime.

other equipment needed to cover peak • Implementing monitoring and approval

demand periods. processes.

• Equipment availability issues due to

Please find our hours of work guidance here.
maintenance problems and other
obstacles.

• Lack of balance in the production

process (e.g., a process step forming
The Coca-Cola Company
a bottleneck that creates a systemic
supports the current recommendation
need for excess hours for that process by several leading health authorities,
or in downstream processes). including the World Health Organization,
that people should limit their intake of
• Improper scheduling practices causing added sugar to no more than

10%
uneven demands, lack of available
materials or production of wrong products.

• Employee interest in earning extra income.

of their total energy/calorie
• Poor record keeping practices due consumption. We’ve begun a
to lack of management awareness journey toward this goal.

concerning hours of work requirements.

33
 We have seen that our engagement with footprint” and do more when it comes
our suppliers on excessive overtime is to the global fight against obesity.
successful. In 2016, long-term suppliers had We’re taking added sugar out of many

Human Rights Report less than half the percentage of incidents of our existing drinks around the world
2016-2017 with regards to excessive overtime (5 while preserving the tastes consumers
percent) than facilities assessed for the first love, with drinks like Coca-Cola Zero
Table of contents
time (11 percent). Sugar and other low- and no-sugar
Foreword by James Quincey
brands globally. Expanding availability
The Coca-Cola Company at a glance Healthy lifestyles of smaller packages like mini cans is
another top priority, so people can more
The global human rights context The Company is evolving our growth
easily control the sugar in their diets.
strategy to give people around the world
The Coca-Cola Company’s Human
Because consumers around the world
Rights Policy more of the drinks they want. We’re
have told us they want straightforward,
reducing sugar and calories across many
Embedding our commitments into accessible information about what they
governance of our brands. We’re making smaller, more
are drinking, we voluntarily put clear,
convenient packages, so controlling sugar
Our supply chain matters easy-to-find calorie information right up
is easier. In addition, we’re giving people
front so consumers can make informed
Salienthuman
Salient human rights
rights risks
risks more of the clear, accessible information
choices without the guesswork.
they need to make truly informed choices.
Access to remedy

Achievements, lessons and Sugar and its influence on increasing Land rights
improvements
obesity in many societies have been
Human rights and land rights are closely
Stakeholder engagement, in the spotlight for some time. At
connected. When land is taken away,
collaborations and memberships The Coca-Cola Company, we understand
people often lose their source of food
this and have chosen to cut our “sugar
and livelihoods, their homes and links
to their traditional ways of life. Land
rights are a complex challenge. In many
countries, land rights are not properly
registered. The World Bank, for instance,
has estimated that between only 2
and 10 percent of total land in Africa is
formally tenured. Moreover, consultation
duties, such as ILO Convention 169
“Over recent years, Coca-Cola has made important
placed on governments, are not
progress with respect to land rights. In 2013, it was the
properly implemented and executed.
first company of its kind to commit to zero tolerance for The Tirana Declaration on securing land
land grabs and adherence to free prior and informed access, adopted in May 2011 by 150

consent and has since taken good faith steps to meet NGOs, calls on “all actors to actively
promote pro-poor, people-centered and
those ambitious commitments. Coca-Cola has recognized
environmentally sustainable governance
that secure land rights are good for business, good for of land and other natural resources.”
smallholder farmers and good for communities. Our hope
at Landesa is that other companies will follow
Coca-Cola’s lead and become champions for
land rights in their own businesses
and beyond.”

CHRIS JOCHNICK,

PRESIDENT AND CEO, LANDESA

34
 Case study: follow-up to the sugar study in Brazil

Through the Brazil sugar study, which we Case studies on land rights: In
Human Rights
Human Rights Report
Report
2016-2017
2016-2017 published in January 2016, we were able partnership with Landesa, we intend
to identify gaps and potential risks on land to develop global case studies on the
Table of
Table of contents
contents rights for our sugar suppliers, which include: implementation of the guidance from
Foreword by
Foreword byJames
James Quincey
Quincey 2017 to 2018, including on Brazil.
• Absence of policy: The study found that
TheCoca-Cola
The Coca-Cola Company
Company at
at aa glance
glance none of the participating mills had land Audit protocols: Through our Supplier

rights policies in place related to land Guiding Principles (SGP), in 2016, we

The global
Thehuman rights context
international
continued to monitor indicators related
human rights context acquisition.
The Coca-Cola Company’s Human to land rights. Issues such as title,
Rights Policy
Starting point
• Land expansion: Nine mills had already compensation and grievance mechanism
Embeddingour
Embedding our commitments
commitments into
into expanded their lands over the last 10 years are captured in the audit reports under a
governance
governance separate land rights section. These audit
and seven currently have expansion plans.
protocol elements allowed us to monitor
Oursupply
Our supply chain
chain matters
matters
• Complexity in Brazil land tenure: The land expansions and socialize our policy
Salienthuman
Salient
Salient human rights
rights risks
risks
risks study found that complexities of with suppliers. In addition, we are working

Access to
Access to remedy
remedy Brazilian land tenure, environmental and with Bonsucro to refine its land rights

indigenous law, especially in certain areas indicators for its mill audits.
Achievements, lessons
Achievements, lessons and
and
improvements
improvements like the northeast, as well as other social
Strengthened communications: We
and economic dimensions, elevate risks
OurStakeholder
stakeholderengagement,
engagement,
have strengthened our communications
collaborations and
collaborations and memberships
memberships
for our suppliers operating in these areas. with our Brazil sugar suppliers on social
and land rights issues to address social
Based on these findings, the Company has
issues, including issues raised in the
developed an action plan, which will also
sugar studies (e.g., expansion and land
serve as a framework for other countries,
tenure complexity). We are focused on
addressing the above risks, and including
continued engagement on the Usina
the following components.
Trapiche case (p. 13), and working with
Supplier guidance on land rights: Working counterparts at Oxfam, PepsiCo and local
with our knowledge partner, Landesa, we organizations on a positive resolution.
have committed to provide guidance on land
Building upon analysis in the Brazil
rights that outlines concrete steps to educate
sugar study on women and land
our suppliers and help ensure adherence to
rights questionnaires, we will explore
the company’s policy. Although the guidance
working with our suppliers to provide
is intended to help safeguard against major
additional context and information on the
conflicts arising from land transactions,
importance of land rights and women.
disagreements or conflicts may still arise.
Because of this, the guidance encourages
suppliers to establish a monitoring and
evaluation process and to provide the
community with access to a functioning and
accessible grievance mechanism.

35
 In response to this challenge and Oxfam’s our integrated quality management
Behind the Brands campaign on this program called the Coca-Cola Operating
issue, in November 2013, our Company Requirements (KORE). The quality and

Human Rights Report committed to responsible land acquisition. safety of all system-wide operations are
2016-2017 Although our company does not typically monitored and measured against the
purchase ingredients directly from farms, same rigorous standards. Our quality
Table of contents
nor are we owners of sugar farms or management program helps us identify and
Foreword by James Quincey
plantations, we acknowledge that as mitigate risks and drive improvements. We
The Coca-Cola Company at a glance a major buyer of several agricultural stringently test and measure the quality of
ingredients, we have a responsibility to take our beverages at every step of production.
The global human rights context
action and use our influence to help protect This due diligence is performed in all of the
The Coca-Cola Company’s Human
the land rights of local communities. countries and territories where our products
Rights Policy
are produced and sold. We also consistently
Embedding our commitments into As stressed on the next page, in the
reassess the relevance of our requirements
governance sugar studies we have included land
and standards and continually work to
Our supply chain matters rights issues in our focus. The studies
improve them across our supply chain.
conducted so far confirmed there is much
Salienthuman
Salient human rights
rights risks
risks
insecurity regarding land rights due to To stay current with new regulations,
Access to remedy weak legislation, corruption and armed industry best practices and marketplace
conflict. Although there has been no conditions, we continually reevaluate
Achievements, lessons and
improvements evidence of widespread land grabs, many the relevance of our requirements and
of the mills in our sugar supply chains do guidelines not only in manufacturing, but
Stakeholder engagement,
collaborations and memberships not have appropriate policies related to throughout the supply chain. We refine
land acquisition. This finding is confirmed our requirements to further ensure that
by our audits, which show that only 22 KORE embodies the most recent and
percent of all bottlers and suppliers have stringent manufacturing processes. To
a written policy reflecting a commitment establish a governance process, each
to respecting land rights. As a follow- business within the Coca-Cola system
up to the findings, we developed and implements, documents and maintains a
distributed guidance on land rights with safety and quality system in accordance
our knowledge partner Landesa (more with KORE. Compliance is monitored
information below). system-wide for added support to the
integrity of our products.
In Brazil, the Company developed a specific
action plan to address the local findings. We drive effective product safety and
quality compliance through unannounced
Product safety/quality audits of our manufacturing facilities

The Coca-Cola system has set high around the world. Unannounced audits

standards to ensure consistent safety encourage manufacturing facilities across

and quality across our entire value chain our system to be “audit-ready” at all times

– from our concentrate production to our and operate in accordance with KORE

bottling and product delivery. We have standards. We recognize that quality “risks”

strong governance practices in place, and are not all equal; therefore, we evaluate

we work diligently to ensure compliance risks in order to focus our system resources

with applicable regulations and standards. where they can create the most impact.

Our strict product manufacturing and We continue to require our suppliers

distribution policies, requirements and to achieve certification under the

specifications are managed through recognized Global Food Safety Initiative

36
 (GFSI) standard. Through supplier world, inspiring, celebrating and creating
development and capability-building memorable experiences for athletes and
programs, such as the GFSI Global fans alike, we are also aware that such

Human Rights Report Markets Programme and others, we events can have an impact on human
2016-2017 strengthen the quality and food safety rights, to which we might be linked as
assurance processes of our supply base. sponsor of these events. In addition, NGOs
Table of contents
and civil society have encouraged us to
Foreword by James Quincey Ensuring the safety and quality of our
use our leverage to address human rights
products has always been at the core of
The Coca-Cola Company at a glance impacts of mega-sporting events.
our business and is directly linked to the
The global human rights context
success of The Coca-Cola Company. Our The Institute for Human Rights and
The Coca-Cola Company’s Human Company Global Product Quality Index Business (IHRB) has issued reports on this
Rights Policy rating has consistently reached 95 since topic. On a broader scale, as IHRB notes,

Embedding our commitments into 2010, while our Company Global Packaging human rights risks associated with these
governance Quality Index has remained steady since types of events may range from forced

Our supply chain matters 2010 at an average rating of 93. evictions of communities, reports of police
brutality, unsafe working conditions in the
Salienthuman
Salient human rights
rights risks
risks
Rights linked to construction and infrastructure sectors,
Access to remedy sponsorships migrant worker vulnerability, sweatshop
conditions, child labor in the merchandise
Achievements, lessons and The Coca-Cola Company has supported
improvements supply chain, restrictions on freedoms
mega-sporting events for nearly 90
of association, peaceful assembly, the
Stakeholder engagement, years, beginning with the 1928 Olympic
collaborations and memberships rights of journalists to report freely, and
Games. While we believe such large-scale
gender, racial, religious, and homophobic
sporting events unite people all over the
discrimination on and off the field of sport.
Please see more here.

The Coca-Cola Company is committed

to help deliver sustainable and socially
responsible mega-sporting events and
to tackle their inherent human rights
risks, in collaboration with others. The
challenge for us is not only that our
“Sport is a celebration of the human condition leverage is limited as an individual
and mega-sporting events should be a showcase of sponsor, but also that we commit to

human excellence. The problem is all too often these multi-annual partnership agreements

events are mired in the abuse of human rights both on and off to sponsor events long before the host
city is selected. Thus, what is needed is a
the track, which takes away from the achievement of men and
broad alliance of sports bodies (e.g., FIFA,
women who spend their whole lives training for a chance for
the Olympics and/or the Commonwealth
gold. A number of major sports bodies have now made human
Games), host cities, governments,
rights commitments, as have hosts, sponsors and broadcasters
organizing committees, sponsors and
– we need to make sure that through collective action and
broadcasters, international organizations
accountability these intentions become a reality.” and NGOs to address the human rights
JOHN MORRISON, CHIEF EXECUTIVE, risks in the bidding process, during the
INSTITUTE FOR HUMAN RIGHTS preparation of the event in the host
AND BUSINESS
country, at the actual event, as well as in
the post-event evaluation. Only though
concerted efforts during all phases of the

37
 process will we be able to systemically Workplace Rights function is co-chair
mitigate human rights impacts linked to of the Task Force on Sponsors and
mega-sporting events. Broadcasters. With others, the Task Force

Human Rights Report will identify the concrete responsibility

During 2016, a Mega-Sporting Events
2016-2017 of sponsors and broadcasters, needs
Platform for Human Rights (MSE
assessments and the next steps. As our
Table of contents
Platform) began to take shape. The
Company’s Director of Global Workplace
Foreword by James Quincey purpose of the MSE Platform is to develop
Rights stressed in the Regional UN Forum
more comprehensive, consistent and
The Coca-Cola Company at a glance on Business and Human Rights in April
accountable approaches to managing
2016 in Doha, “It is now time for those
The global human rights context
social risks and adverse human rights
involved in mega-sporting events to
The Coca-Cola Company’s Human impacts arising from major sporting
commit to human rights, to implement
Rights Policy events. It will be part knowledge-sharing,
those commitments and demonstrate their
Embedding our commitments into part oversight and part capability-building.
effectiveness. For sponsors, it is critical to
governance A steering committee was formed with
get behind global engagement efforts and
Our supply chain matters representatives from governments,
be part of the solution – to use sponsors’
sponsors and broadcasters, as well as
Salienthuman
Salient human rights
rights risks
risks
leverage to drive further change in the
NGOs and international organizations.
sector, including supporting the creation
Access to remedy The MSE Platform’s Steering Committee
of an independent center of learning and
is chaired by Mary Robinson, former U.N.
Achievements, lessons and accountability on mega-sporting events
improvements High Commissioner for Human Rights and
that can support any country interested in
former President of Ireland.
Stakeholder engagement, hosting an event to put their bid together
collaborations and memberships
The MSE Platform is an initiative in a way that effectively prevents negative

of the IHRB and is supported by impacts and maximizes the positive

The Coca-Cola Company, among many legacy.” See more here.

others. We are part of the Steering

More information on the MSE Platform
Committee and the Director of
is available under: https://www.ihrb.org/
The Coca-Cola Company’s Global
megasportingevents/mse-about.

38
 Particular concerns have been raised We have created privacy policies tailored
regarding the rights and safety of migrant for our consumer/customer data and for
workers in the preparation of the 2022 our employee data, based on privacy

Human Rights Report FIFA World Cup in Qatar. The Company laws, regulations and industry standards.
2016-2017 shares these concerns and has continuously The policies define personal information
pushed the host government as well as FIFA and protection requirements, and these
Table of contents
to take action and ensure safe workplaces requirements are integrated into the
Foreword by James Quincey
and end-systems that perpetuate Global IT Software Development Life
The Coca-Cola Company at a glance heightened risks of forced or involuntary Cycle. We also include security and
labor. Because of our strong engagement, privacy exhibits in our vendor agreements.
The global human rights context
in 2016 the Company was appointed to join Key provisions of The Coca-Cola Company’s
The Coca-Cola Company’s Human
the Human Rights Advisory Board of FIFA. privacy policies include:
Rights Policy
The Human Rights Advisory Board will
• Company personnel will only process
Embedding our commitments into advise FIFA on all issues board members
governance personal information for legitimate
consider relevant for the implementation
business needs or as required or
Our supply chain matters of FIFA’s human rights responsibilities.
authorized by law.
Salienthuman
Salient human rights
rights risks
risks
Those could include labor standards,
• Access to internal Company systems
health and safety, property rights, security,
Access to remedy that contain personal information is
discrimination and freedom of expression.
Achievements, lessons and limited to a select group of authorized
improvements In collaboration with civil society and Company users who have a business
international organizations, we will need for accessing the information.
Stakeholder engagement,
collaborations and memberships continue to use our leverage to improve Personnel who need permanent or
the safety and rights of workers engaged regular access to personal information
in the preparation of the 2022 FIFA World are bound by contract, code of
Cup in Qatar. The Coca-Cola Company conduct, work rules or polices that
sees the UNGP as a prerequisite for protect the confidentiality of the
doing business with potential partners, personal information.
including companies, international sports
• The Company will provide each
bodies and others. We are transparent
individual with notice of the personal
and discuss these efforts with a broad
information that was collected, purpose
range of stakeholders in multi-stakeholder
of the information being collected,
platforms, such as the UN Forum on
identity of the entity responsible
Business and Human Rights.
for the collection, and access and
correction rights for the individual.
Right to privacy
• When appropriate and as required
The Coca-Cola Company respects the
by law, Company entities will provide
privacy of individuals and strives to ensure
customers, consumers and personnel
the security of the personal information
with the right to choose how, when
of our employees, business partners,
and for what purpose(s) their personal
customers and consumers through various
information will be processed.
processes and policies.
• The Company will handle personal
The Coca-Cola Company gathers and data in accordance with applicable
generates data from various sources, such local law. Where applicable local
as employee data, customer-profile data law provides a lower level of
from loyalty programs, social media data, protection of personal data, the
supply chain data, sales and shipment data requirements of the privacy policy of
from bottling partners, and transaction The Coca-Cola Company will apply.
and merchandising data.

39
 Privacy training

Employees complete training on the

Company’s Information Protection Policy
Human Rights Report (IPP), which defines information protection
2016-2017
practices to safeguard Company
Table of contents intellectual property, trade secrets and
other classified information. This training
Foreword by James Quincey
takes place within a month of onboarding,
The Coca-Cola Company at a glance
and then every three years thereafter.
The global human rights context The privacy policies are referenced in
the IPP and are included as part of the
The Coca-Cola Company’s Human
Rights Policy IPP training. The Company also provides
employees with access to a Personal and
Embedding our commitments into
governance Sensitive Personal Information Guide,
which explains the different categories of
Our supply chain matters
personal and sensitive information and
Salienthuman
Salient human rights
rights risks
risks gives instructions on actions employees

Access to remedy
should take to protect that information.

Achievements, lessons and In addition, we provide targeted privacy

improvements
training for employees whose jobs require
Stakeholder engagement, them to handle personal information, such
collaborations and memberships as Human Resources staff, people managers,
IT administrators and Marketing staff.
Clauses. And, we reviewed more than
In addition to employee training, we 500 projects, contracts, applications and
provide training to our contractor staff requests for access to personal and/or
members, who develop our consumer sensitive personal information to ensure our
websites and/or mobile applications, host privacy and security requirements are met.
our data/applications, and access our data
within Coca-Cola applications. Future of privacy

With global digitization and use of

2016 accomplishments
information, privacy will continue to be an
In 2016, the Company created an important topic for The Coca-Cola Company.
inventory of applications that collect and One of our key principles is “surprise
process personal and sensitive personal minimization” – meaning we do not want
information. The inventory is for both to collect, process, and/or share personal
consumer and employee applications, information that is unexpected by our
and it includes information on data flows, users.
access rights and protection controls.
The legislation to protect individual
Also in 2016, the Company moved from Safe privacy will continue to evolve. Given
Harbor certification for the legal transfer the Company’s new operating model
of personal information from the European for growth, focused heavily on further
Union (EU) to the United States to EU digitalization of the Company, data privacy
Model Clauses. We updated our vendor will become an even more important topic.
agreements and our internal Business Unit We are deeply committed to fully respect
agreements with the appropriate data the data privacy of customers, employees
transfer language to meet the EU Model and all relevant stakeholders.

40
 Social media on a daily basis.” Corruption thereby
undermines the government’s ability
The Company has publicly committed to
to respect, protect and fulfill its human
the following principles with regard to
Human Rights Report rights obligations. If the effectiveness of
social media:
2016-2017 law enforcement institutions and labor
• Coca-Cola will be transparent in every inspectors is severely undermined through
Table of contents
social media engagement. corruption, the risks for adverse human
Foreword by James Quincey
rights impacts significantly increase.
• Coca-Cola will protect our consumers’
The Coca-Cola Company at a glance
privacy in compliance with applicable As a company that operates in nearly
The global human rights context privacy policies, IT security policies, every country, we are confronted with
The Coca-Cola Company’s Human laws, rules and regulations. these challenging framework conditions
Rights Policy in many of our markets. However, our
• Coca-Cola will respect copyrights,
Embedding our commitments into long-standing commitment to doing
trademarks, rights of publicity and
governance business with integrity means avoiding
other third-party rights.
Our supply chain matters
corruption in any form, including bribery,

• Coca-Cola will be responsible in and complying with the anti-corruption

Salienthuman
Salient human rights
rights risks
risks
our use of technology and will not laws of the United States and of every
Access to remedy
knowingly align our Company with country where we operate.

Achievements, lessons and any organizations or websites that use

For The Coca-Cola Company and our
improvements excessive tracking software, adware,
entire system, the Code of Business
Stakeholder engagement, malware or spyware.
Conduct and Anti-Bribery Policy, which
collaborations and memberships
• Coca-Cola will reasonably monitor our we revised in June 2016, provides

behavior in the social media space, guidance on how to conduct business

implement appropriate protocols for in a fair, ethical and legal manner. Our

establishing our social media presence anti-corruption compliance program

and keep appropriate records of our encompasses numerous reporting,

participation as dictated by law and/or monitoring and certification controls,

industry best practices. as well as an educational component

comprising web-based and in-person

Linkage to corruption / training. Company employees receive

anti-bribery risks through training and/or communication relating

value chain to integrity in dealing with government

officials, and select employees must
Corruption is a global problem, impacting
complete a specialized anti-corruption
all industries. Transparency International,
course. The Code of Business Conduct
the global coalition against corruption,
is monitored internally by the Ethics
states, “No country gets close to a perfect
and Compliance Committee. Company
score in the Corruption Perceptions
lawyers around the world assist business
Index 2016. Over two-thirds of the 176
operations in ensuring compliance with
countries and territories in this year’s
laws and human rights-related standards.
index fall below the midpoint of our scale
Additionally, we have a global due
of 0 (highly corrupt) to 100 (very clean).
diligence program to screen vendors and
The global average score is 43, indicating
potential vendors deemed high risk and
endemic corruption in a country’s public
to obtain their agreement to abide by our
sector. Top-scoring countries are far
Anti-Bribery Policy. More information is
outnumbered by countries where citizens
available here.
face the tangible impact of corruption

41
 CHAP TER 7:

Human Rights Report

Access to remedy
2016-2017

Table of contents
Access to remedy is a prerequisite for and ensure concerns are appropriately
Foreword by James Quincey
the full enjoyment of human rights. addressed in a timely manner. For systemic
The Coca-Cola Company at a glance The Coca-Cola Company places great issues, such as human rights risks linked
The global human rights context importance on access to remedy, the third to mega-sporting events, we collaborate
pillar of the UNGP. When we identify that with other like-minded organizations and
The Coca-Cola Company’s Human
Rights Policy we have caused or contributed to adverse companies to prevent, mitigate and remedy
human rights impacts, we are committed to adverse human rights impacts.
Embedding our commitments into
governance
providing for or cooperating in remediation.
Employees of The Coca-Cola Company
Our mechanisms do not obstruct access to
Our supply chain matters are encouraged to report grievances
other remedy procedures.
through the EthicsLine, a global web
Salient human rights risks
There are various channels through which and telephone information and reporting
Access to
Access to remedy
remedy
individuals, groups and communities service. Telephone calls are toll-free,
Achievements, lessons and can raise grievances. At the global level, and the EthicsLine is open 24 hours a
improvements trade unions and civil society may raise day, seven days a week, with translators
Stakeholder engagement, concerns about adverse human rights available. In 2016, we had 192 cases related
collaborations and memberships impacts through our ongoing dialogue. to workplace rights reported through the
At a regional level, our Business Units EthicsLine. The main issues/allegations
around the world proactively engage with were related to:
local communities where they conduct
• Discrimination (55 cases / 27 percent)
business. Any serious issue, which cannot
be addressed locally, may be escalated to • Work hours and wages (42 cases / 23
the global level, where a cross-functional percent)
team will examine the issue. In addition, we • Retaliation (37 cases / 20 percent)
undertake regular audits of our Company-
• Safe and healthy workplace (33 cases /
owned facilities, independent bottlers and
17 percent)
direct, authorized suppliers. The audits
include confidential interviews with workers • Ask a workplace rights question (11

in these organizations. When an audit cases / 6 percent)

identifies non-compliance, a corrective • Workplace security (10 cases / 5

action plan is established to have these percent)
issues addressed within an agreed-upon
• Freedom of association (4 cases / 2
time frame. The corrective action is tracked
percent)
and may require a re-audit to determine if
improvement has occurred. Through this Resolving abuses can be very complex,
process, 475 facilities were brought into requiring a comprehensive approach that
compliant status in 2016, thereby positively includes cooperation with NGOs, local
impacting the workplaces of more than government and other organizations.
135,000 workers. For example, our Human Rights Policy
and SGP strictly prohibit the use of child
We also expect our suppliers and bottlers
labor in any of our or our suppliers’
to provide workers with a mechanism to
operations. We know, however, that child
express grievances without fear of reprisal

42
 labor cannot be eliminated by working development of children. Through the
only with our suppliers and that the most project, approximately 50 women found
effective solutions are designed to address a different way to earn income and 100

Human Rights Report root causes and support individuals children were removed from child labor.
2016-2017 and families who need to continue to
Another example is our focus on child
earn a wage. An example of such a
Table of contents
labor in PET recovery. In reaction to
comprehensive approach is our response
Foreword by James Quincey reports of children collecting PET bottles
to the problem of children participating
in Mexico, in spring 2017, we developed
The Coca-Cola Company at a glance in the illegal appropriation of sugarcane
a three-phase action plan with our local
in the northern zone of the Department
The global human rights context
supplier PetStar:
of Cauca in Colombia. This region lacks
The Coca-Cola Company’s Human
employment opportunities, resulting in
Rights Policy 1. Contingency (short-term): PetStar
parts of the population, including children,
temporarily stopped sourcing from
Embedding our commitments into engaged in stealing sugarcane, which is
governance high-risk areas, developed a child labor
then sold as raw material to illegal panela
policy and started monitoring other
Our supply chain matters factories. In a project with Colombia’s
supplying points.
Salient human rights risks Association of Sugarcane Growers,
Asocaña, and with the involvement of local 2. Risk Assessment (medium-term):
Access to
Access to remedy
remedy
government and other local actors, such PetStar engaged Verité to complete a
Achievements, lessons and as the Public Education Secretary, the risk assessment in the overall supply
improvements
town’s technical assistance unit (UMATA), chain. This includes a multi-stakeholder
Stakeholder engagement, Public Health Secretary, Government approach, in which the issue and
collaborations and memberships possible solutions will be discussed
Secretary and Community Development,
we engaged in training women to better with several parties. Verité will provide
position them to find alternative income recommendations on how to address
possibilities. This project also focused on the problem.
addressing the social and cultural patterns
3. Remediation (long-term): Once the
related to child labor in these communities
risk assessment report is received,
and the importance of education for the
we will implement actions, such as
supporting collectors training and
capability building on child labor
policies, along with other requirements
(e.g., securing a signed legal contract
In fall 2015, through between PetStar and collectors related
anonymous polling, we asked to child labor).
our employees globally whether they
think they could report suspected violations With this project in its early stages, results
of the Code of Business Conduct through are not ready to be reported.
the appropriate company channels without
fear of retaliation or reprisal. In the future, we will determine whether

83%
and how we can make access to remedy
more accessible, using innovative
approaches to reach deeper into the
supply chain.
of employees agreed they think that they
could do so. We took action to address
issues in parts of the organization
where the scores were lower.

43
 CHAPTER 8:

Human Rights Report

What have we achieved,
2016-2017

Table of contents what lessons have we

Foreword by James Quincey

The Coca-Cola Company at a glance learned and where do we

The global human rights context

The Coca-Cola Company’s Human

Rights Policy
have to improve or find
Embedding our commitments into
governance
solutions?
Our supply chain matters

Salient human rights risks

Access to remedy
Human rights will continue to be a key respect human rights. Mr. Quincey has
priority of the Company. While we have been engaged in the Human Rights
Achievements, lessons
Achievements, lessons and
and
a new CEO and we are evolving our Policy of the Company for years and
improvements
improvements
growth strategy, the baseline for our will continue pushing our human rights
Stakeholder engagement,
business will be to continue to fully journey forward as we implement our
collaborations and memberships
total beverage company strategy.

The global stakeholder consultation

on our Human Rights Policy, which
was described above in more detail
by Bennett Freeman, triggered more
changes than anticipated. Fully
committed to meeting the expectations
of stakeholders, we undertook a
comprehensive revision of our Human
Rights Policy. The revised Human Rights
Policy was discussed and approved
by our Board of Directors in July 2017
and will be launched by Mr. Quincey on
Human Rights Day, December 10, 2017.

As the field of business and human

rights evolves, so must we. We have
identified access to remedy for workers
in our supply chain as an area where
more work is necessary. We also
understand more determined efforts
are needed to adequately follow up
on findings from the sugar studies.
Although no systemic child and forced
labor or land grabbing have been

44
 identified to date, it is clear not all A key challenge is integrating the UNGP
sugar suppliers in all countries have the deeply into the supply chain. Instead of
necessary policies in place to safeguard auditing suppliers against our indicators,

Human Rights Report from the occurrence of these atrocities. the aims are for suppliers to embrace the
2016-2017 UNGP with or without the expectation
Human rights defenders continue to be
of audits, engage in their own due
Table of contents
attacked and threatened in many countries
diligence, be transparent about their
Foreword by James Quincey around the world. We will more strongly
salient human rights risks and take action
focus on which role The Coca-Cola
The Coca-Cola Company at a glance to address them. This is a long and vital
Company can play and what kind of action
journey, and one we will continue to
The global human rights context
we can take to defend and protect human
embark on for years to come.
The Coca-Cola Company’s Human rights defenders who are threatened.
Rights Policy We are constantly pushing ourselves
We also recognize the need to examine
Embedding our commitments into and striving for improvement. We are
governance the accuracy of our data gathering. We
committed to addressing the issues raised
modified our reporting standards to
Our supply chain matters above and to further strengthening our
be more stringent, and this new data-
human rights engagement in the next year.
Salient human rights risks gathering methodology revealed a drop in
compliance with our Human Rights Policy
Access to remedy
from 98 percent in 2015 to 89 percent
Achievements, lessons
Achievements, lessons and
and
in 2016. However, we are absolutely
improvements
improvements
committed to bringing all plants into full
Stakeholder engagement,
compliance and to reach the target of 98
collaborations and memberships
percent compliance by 2020.

Key achievements in 2016 and

2017 include:

• Publication of child labor,

forced labor and land rights risks in our
sugar supply chain in five additional countries.

• Identification of salient human rights risks in

workshops and stakeholder consultations
around the world.

• Revision of our human rights policy, based on internal

and external global input.

• Strengthening of collaborative action related to

mega-sporting events.

• Development of our first human rights report, which

aligns with the UNGP Reporting Framework.

• Achieving a 21 percent reduction in

serious incidents and injuries.

• Sourcing more than 1 million tons of more

sustainable sugar in 2016.

45
 CHAPTER 9:

Human Rights Report

Our stakeholder
2016-2017

Table of contents engagement, collaboration

and memberships – If you
Foreword by James Quincey

The Coca-Cola Company at a glance

The global human rights context

The Coca-Cola Company’s Human

Rights Policy
want to be quick, you walk
Embedding our commitments into
governance
alone; if you want to walk
Our supply chain matters

Salient human rights risks

far, you walk together
Access to remedy

Achievements, lessons and One common theme in this report has been and work to engage openly, providing
improvements the close engagement of the Company the information they need to make
Stakeholder engagement,
Stakeholder engagement, with stakeholders and other organizations. meaningful contributions to our decision-
collaborations and
collaborations and memberships
memberships making processes and activities.
We believe consistent and open
• Inclusiveness: Include a wide range of
communication with a diverse range
stakeholders, especially those who are
of stakeholders leads to continuous
traditionally marginalized (e.g., women,
improvement as we work to bring about
youth, indigenous groups and the poor).
respect for human rights across the
Coca-Cola system. Our policies and • Consistency: Maintain regular and
programs are only as strong as the consistent communication to ensure
engagement with the people and continuity and meaningful engagement.
communities where we operate. Our
• Accountability: Inform stakeholders
approach to stakeholder engagement
of how their feedback influenced the
is not event-driven, rather a continuous
outcome of a decision or activity.
dialogue that enables us to identify and
address potential issues proactively and We use a variety of communication
collaboratively. channels and platforms to engage
with stakeholders including our human
We work with a wide range of stakeholders
rights conferences, Coca-Cola Journey,
within the Coca-Cola system, among our
assessments (e.g., sugar studies), on-the-
business partners, including suppliers and
ground projects, business or human rights-
customers, and with our many external
specific associations, and routine, standing
stakeholders across the private, public,
dialogues with several labor and nonprofit
nonprofit and labor sectors. We believe
organizations. Examples include:
together we can have a greater and more
sustainable impact than by working alone. • Oxfam, which we primarily engaged
with on our sugar studies, land rights
Our principles:
and environmental issues.
• Transparency: Respect the diversity of
• Institute for Human Rights and Business,
views and values stakeholders present
which we cooperate with on addressing

46
 human rights risks related to mega- Collaborative action is key to advance
sporting events and the establishment implementation of the UNGP. We
of the MSE Platform, as well as the are keen to learn from, inspire and
Human Rights Report Leadership Group on Responsible encourage other companies and
2016-2017 Recruitment to eliminate all worker fees organizations, and collaborate in various
to labor agencies worldwide. areas. We are an active member of
Table of contents
• WWF, which we work with on the a number of initiatives, groups and
Foreword by James Quincey
implementation of our SAGP and water associations in this regard, such as:
The Coca-Cola Company at a glance
stewardship. • AIM-PROGRESS: AIM-PROGRESS is a
The global human rights context • Interfaith Center on Corporate forum of Fast Moving Consumer Goods

Responsibility, which we have worked manufacturers and common suppliers,

The Coca-Cola Company’s Human
Rights Policy with on our human rights approach for assembled to enable and promote

many years, including on our annual responsible sourcing practices and

Embedding our commitments into
governance human rights conference. In 2016, we sustainable supply chains. As an

invited ICCR to shadow two audits active member of AIM-PROGRESS,

Our supply chain matters
in Taiwan to validate our updated The Coca-Cola Company leads a work
Salient human rights risks stream to develop and deliver supplier
process and to provide constructive
Access to remedy feedback on opportunities to progress trainings. Industry-wide approaches –

the dialogue locally. ICCR created a including that of AIM-PROGRESS- are

Achievements, lessons and
improvements booklet of case studies related to good an effective way to assure supply chain

practices with reference to Coca-Cola. performance and meet increasing

Stakeholder engagement,
Stakeholder engagement,
collaborations and
collaborations and memberships
memberships

Our engagement with the

Interfaith Center on Corporate Responsibility
As a beverage company, our mission is to and participation in the Leadership Group
refresh the world, to inspire moments of for Responsible Recruitment. In 2016,
optimism and happiness while creating the Company invited ICCR to shadow
value for shareowners over the long term an auditor at two Taiwanese suppliers,
and making a difference. The Interfaith where migrant workers are present. The
Center on Corporate Responsibility (ICCR) intention was to validate the updated
has not only been an important coalition process implementation and solicit
of shareowners, but also an invaluable feedback.
partner to Coca-Cola. ICCR is a coalition of
Our ongoing dialogue with ICCR highlights
300 faith and values-driven organizations,
the importance of being transparent
representing more than $400 billion in
and open to suggestions, and how
invested capital, which manage their
stakeholders can help form a nexus of
investments with an eye toward social good.
like-minded organizations. We chose
Overtime ICCR has challenged and Taiwan for the shadow audits not because
guided us on a number of topics. it was a showcase for best practice, but
Most recently, we engaged with ICCR because we knew there would be issues
on audit protocol updates regarding identified and were sincere in our request
protections for migrant workers who for assistance. After the visit, ICCR created
may be vulnerable to the risk of human a best practice guidance document, which
trafficking. ICCR has been a leader in included a positive case study on the
the human trafficking discussion as Coca-Cola shadow audits, along with other
demonstrated with its “No Fees” initiative company case studies.
47
 Lessons learned from our Oxfam America engagement

Dialogue and engagement have always been allowed us to gain important insights and

Human Rights
Human Rights Report
Report a cornerstone of The Coca-Cola Company- bring about increased momentum to drive
2016-2017
2016-2017 Oxfam America relationship. Many different change more broadly.

Table of
Table of contents
contents issues have surfaced over the more than 10
Throughout this engagement process,
years of the Company-NGO relationship,
Foreword by
Foreword byJames
James Quincey
Quincey the Company has benefited from Oxfam’s
spanning human rights, supply chain, land
perspective and importantly realized that
TheCoca-Cola
The Coca-Cola Company
Company at
at aa glance
glance rights, women’s empowerment and climate
to be successful, we must:
change. A willingness to participate in open
The global
Thehuman rights context
international
and transparent communication has been an • Be vulnerable, it’s ok to not have the all
human rights context
The Coca-Cola Company’s Human
important engagement principle embraced the answers
Rights Policy
Starting point
by both organizations. • Ensure consistent and open
Embeddingour
Embedding our commitments
commitments into
into communication
governance
governance This approach was tested during Oxfam’s
• Align on clarity of purpose and the
Oursupply
Our supply chain
chain matters
matters Behind the Brands campaign, which focused
process
on the top 10 food and beverage companies,
Salienthuman
Salient human rights
rights risks
risks • Establish communication routines with
and a specific campaign in 2013 targeting
clear lines of accountability
Access to
Access to remedy
remedy The Coca-Cola Company on land rights

Achievements, lessons
Achievements, lessons and
and
and sugar. Oxfam highlighted a gap in the Challenges certainly remain as we work to
improvements
improvements Company’s Supplier Agriculture Guiding align our very different perspectives at times.
Principles, which led to a commitment We have not always agreed, but we continue
Our Stakeholder
Stakeholder
Stakeholderengagement,
engagement,
Engagement,
collaborations and
collaborations
Collaborations and memberships
memberships
Memberships by Coca-Cola to address land rights in its to move toward a shared understanding
policies and human rights due diligence of both constructive problem-framing and
process. Since then, we have worked with problem-solving. Both organizations are
Oxfam on several land rights workshops, the committed to systemic, long-term change,
Company’s sugar studies on land rights, child which we think will help provide a road map
labor, forced labor and specific land cases in toward a more sustainable future.
Brazil and Cambodia. This engagement has

stakeholder demands in a way that world. BSR develops sustainable

reduces duplication and cost for our business strategies and solutions through
suppliers and ultimately consumers. consulting, research, and cross-sector
By working together with peers, collaboration. The Coca-Cola Company
the Company strengthens common has engaged particularly in the peer
messaging about workplace rights, learning activities of BSR. More
overall. Please see our engagement information can be found at www.bsr.org/.
chapter on our supply chain activities.
• CSR Europe. CSR Europe is the
More information can be found at www.
leading European business network
aim-progress.com/.
for Corporate Social Responsibility.
• Business for Social Responsibility (BSR). The Coca-Cola Company is a member
BSR is a global nonprofit organization of its network of approximately
that works with its network of more 46 corporate members and 42 National
than 250 member companies and other CSR organizations. CSR Europe acts
partners to build a just and sustainable as a platform for businesses looking to

48
 enhance sustainable growth and positively • Leadership Group on Responsible
contribute to society. More information Recruitment (LGRR). LGRR is a business
can be found at www.csreurope.org/. leadership group working closely with

Human Rights Report international organizations, NGOs and

• Global Business Initiative on Human Rights
2016-2017 trade unions to eliminate all worker fees
(GBI). GBI’s mission is to advance human
in recruitment, both in law and practice,
Table of contents rights in a business context through
by 2026. The first international forum
cross-industry peer learning, outreach and
Foreword by James Quincey
on responsible recruitment was hosted
capacity building, and by informing policy.
The Coca-Cola Company at a glance in Berlin on June 19, 2017 to explore
The Coca-Cola Company is part of a core
collective action to end the global
The global human rights context group of corporations from different
demand for exploitation in supply
industries, headquartered in diverse
The Coca-Cola Company’s Human
chains and also increase the supply of
Rights Policy countries, with global operations that meet
ethical recruitment. More information
at least two times per year and engage in
Embedding our commitments into under the following link: https://www.
governance this in-depth exchange of experience and
ihrb.org/employerpays/leadership-
problem solving. More information can be
Our supply chain matters group-for-responsible-recruitment
found at www.global-business-initiative.org/.
Salient human rights risks • Mega-Sporting Events Platform
• ILO Child Labor Platform (CLP). Under
for Human Rights (MSE Platform).
Access to remedy the leadership of the International Labor
Organization (ILO), the International The Mega-Sporting Events Platform
Achievements, lessons and
Organisation of Employers (IOE) and the for Human Rights (MSE Platform) is an
improvements
International Trade Union Confederation emerging multi-stakeholder coalition
Stakeholder engagement,
Stakeholder engagement,
(ITUC), and in a multi-stakeholder of international and intergovernmental
collaborations and
collaborations and memberships
memberships
approach, the CLP aims to identify organizations, governments, sports

obstacles to the implementation of the governing bodies, athletes, unions,

ILO Conventions in supply chains and sponsors and broadcasters and civil

surrounding communities, identify practical society groups. Through dialogue and

ways of overcoming these obstacles, joint action, the mission is to ensure all

and catalyze collective action. actors involved in staging an event fully

The Coca-Cola Company is a founding embrace and operationalize their

member of the CLP and actively engages respective human rights duties and

in peer learning. More information can be responsibilities throughout the MSE

found at www.ilo.org/ipec/Action/CSR/ lifecycle. Chaired by Mary Robinson,

clp/lang--en/index.htm. former U.N. High Commissioner for

Human Rights and former President of
• International Organisation of Employers
Ireland, the MSE Platform is facilitated
(IOE). The IOE is the largest network
by IHRB. The Coca-Cola Company is a
of the private sector in the world, with
founding member of the MSE Platform
more than 150 business and employer
and co-chairs the task force of Sponsors
organization members. In social and
and Broadcasters. More information
labor policy debate taking place in the
can be found at www.ihrb.org/
International Labor Organization, across
megasportingevents.
the UN and multilateral system, and in the
G20 and other emerging processes, the • Shift. The Coca-Cola Company

IOE is the recognized voice of business. participates in the Business Learning

The Coca-Cola Company is a partner program of Shift, the leading center of

of the IOE and is engaged in its Human expertise on the UNGP on Business and

Rights and CSR Policy Working Group Human Rights. Founded in 2011, Shift’s

as well as the Global Industrial Relations team of experts facilitate dialogue, build

Network (GIRN). More information can be capacity and develop new approaches

found at www.ioe-emp.com. with companies, governments, civil

49
 society and international institutions to initiative, since 2006, and has actively
enable implementation of the UNGP. engaged in several projects, such as
More information can be found at www. CEO Water Mandate, where we helped

Human Rights Report shiftproject.org/. fund and develop the Water Action Hub.
2016-2017 More information can be found at www.
• The Consumer Goods Forum (CGF).
unglobalcompact.org/.
Table of contents The mission of CGF is to bring together
consumer goods manufacturers and • United States Council for International
Foreword by James Quincey
retailers in pursuit of business practices for Business (USCIB). The USCIB
The Coca-Cola Company at a glance
efficiency and positive change across the represents U.S. business at the ILO,
The global human rights context industry, benefiting shoppers, consumers United Nations and many other
and the world without impeding international organizations and
The Coca-Cola Company’s Human
Rights Policy competition. As an active member initiatives. The Coca-Cola Company
of the CGF, The Coca-Cola Company is an active member of the USCIB
Embedding our commitments into
governance co-chairs the work stream focused Corporate Responsibility & Labor
on implementing the resolution on Affairs Committee. More information
Our supply chain matters
eliminating forced labor among members. can be found at http://www.uscib.org/.
Salient human rights risks More information can be found at www. • World Business Council for Sustainable
theconsumergoodsforum.com/.
Access to remedy Development (WBCSD). The WBCSD is a
• UN Global Compact. global, CEO-led organization of more than
Achievements, lessons and
improvements The Coca-Cola Company has been a 200 leading businesses working together
member of the UN Global Compact, the to accelerate the transition to a sustainable
Stakeholder engagement,
Stakeholder engagement,
collaborations and
collaborations and memberships
memberships world’s largest corporate sustainability world. The Coca-Cola Company is
member of the WBCSD and engages,
among other areas, in its work stream on
human rights. More information can be
found at www.wbcsd.org/.

In addition to the ongoing engagement

between our Global Workplace Rights staff
and external stakeholders, any significant
The success of The Consumer Goods Forum change to our policy or approach is vetted
(CGF) is based on a shared agenda to drive positive change with key stakeholders. As we look to the

through the implementation of business actions that positively future, we see an opportunity to further
a more community-based approach to
impact both people and the planet. Without engaged members, like
stakeholder engagement.
The Coca-Cola Company, success would not be possible. The Company,
as a CGF Board member, was integral in helping our industry develop the
first-ever resolution that commits to eradicate forced labour from global
supply chains and actively champions the implementation of our Priority
Industry Principles. The Coca-Cola Company also helps engage the
industry through their chairmanship of our Social Sustainability
Committee and in their engagement with other key stakeholders.
We look forward to continuing this collaborative journey with
The Coca-Cola Company and our entire global membership.

DIDIER BERGERET, DIRECTOR, SOCIAL SUSTAINABILITY

AND GLOBAL SOCIAL COMPLIANCE PROGRAMME,
THE CONSUMER GOODS FORUM

50
 Human Rights Report
2016-2017

Table of contents

Foreword by James Quincey

The Coca-Cola Company at a glance

The global human rights context

The Coca-Cola Company’s Human

Rights Policy

Embedding our commitments into

governance

Our supply chain matters

Salient human rights risks

Access to remedy

Achievements, lessons and

improvements

It’s not just what we do, but how we do it.

Stakeholder engagement,
collaborations and memberships

This report and its contents are subject to the terms of use outlined in the Terms and Conditions section of Coca-Cola’s website.

51