Thursday, January 29, 2009

Notes On Coca-Globalization, by Robert Foster

Foster, Robert. Coca-Globalization: Following Soft Drinks from New York to New Guinea. New York, NY: Palgrave Macmillan Ltd., 2008.

Annotation:
Foster explores the social life of Coca-Cola in a number of settings, focusing primarily on Papua New Guinea. Beverages are used as an entry point to discuss the various types of social and cultural exchanges occurring within an increasingly interconnected world. The book is divided into two parts; ‘Soft Drinks and the Economy of Qualities’ and ‘Globalization, Citizenship and the Politics of Consumption.’ Of particular importance is Foster’s attention to how individuals ascribe different social and cultural meanings to commodities like Coca-Cola. Foster is a Professor of Anthropology at the University of Rochester.


Introduction:

Quotes & Reflections

"This second wave [of globalization] formed in the mid-1990s; it followed a wave of consolidation, centralization, and standardization in which The Coca-Cola Company, under the leadership of Roberto Goizueta from 1981-1997, aggressively promoted its flagship product as a universal beverage" (ix).

"According to Daft, 'The very forces making the world more connected and more homogenous are simultaneously triggering a desire to withdraw, pull the shades and safeguard whatever is uniquely local.' The necessary response to this backlash, Daft pronounced, is to think locally and to act locally - to develop new regional brands customized to local tastes and to push marketing decisions and managerial accountability down to the local level" (ix).

"Objectively, complex connectivity refers to the empirical linkages being established among diverse and physically separated people through movements of capital, media, and, of course, people themselves... Subjectively, complex connectivity refers to the ways in which these linkages are imagined by the people involved, the way in which an individual person's phenomenal world is extended - or foreshortened" (xiii).

"On the other hand, consumers use the commercial value of their brand loyalty to lobby corporations for a variety of goods and services, the delivery of which was once presumed to be the obligation and function of elected governments in promoting social welfare. The result is a distinctively non-democratic though not always negative form of contested governance in which consumers use their market role to act as citizens while corporations use their resources to act like states." (xix)

"I propose to use Coca-Cola soft drinks as symbols of an uncertain process of global connection in which people everywhere, including Papua New Guinea, give meaning to ordinary consumer commodities - though rarely under circumstances of their own devising" (xix).

"Commodities are thus mutable, and this mutability has been most clearly recognized by anthropologists who regard consumers as agents capable of appropriating commodities for ends not imagined by producers. But this mutability is not infinite, a limitation on consumption most clearly recognized by political economists who highlight the structural inequalities of complex connectivity, including basic inequality of access to consumer commodities" (xix).

"For instance, it is by aligning the perspectives of consumers with those of their own that agents on the supply side of worldly things capture the value of consumers' appropriation and use of a product - a complicated way, perhaps, to unpack the notion of "brand loyalty" (xx).

"After the war [WWII], the company explicitly attempted to fashion itself as a local business wherever it operated, such that all consumers everywhere would recognize Coca-Cola as an artifact of their home, however worldly a thing it might be. This attempt involved not only adjusting advertisements to various local sensibilities, but also using the franchaise system of independent bottlers to reembed the product in local social relations (as well as local supply chains). But the attempt gave way in the 1980s to a new globalizing impulse, one that involved the consolidation of bottlers and the emergence of global advertising" (xx).

Personal Reflections
1.) CSR campaigns are situated within the context of the second wave of globalization; the trend is to incorporate and internalize diversity in order to universalize a particular product. The Coca-Cola Company has attempted to digest some external criticisms, the byproducts are highly corporatized social responsibility campaigns.

2.) Important to make the distinction between corporate governance and democratic governance. Public relations and consumer driven campaigns might give the illusion of a democratic structure or that corporations are set up to allow feedback and dialogue, but they are ultimately beholden to their shareholders. This distinction becomes particularly important when corporations start taking on responsibilities that were traditionally carried out by governments. For instance, if a corporation is responsible for a shore cleanup project, there could potentially be less avenues for public input and oversight in the project since the work is not being implemented by public officials (who might be required by law to make the details of the project accessible and transparent).

3.) The rise of corporate power has signaled a shift in global governance, one that has transferred a lot of power and legitimacy into the private market. Yet, democracy cannot be translated into market terms. Characteristics of corporate governance include a kind of corporate citizenship and brand loyalty that is part of an interconnected imagined community of consumers. CSR campaigns attempt to embody the public service aspect of corporate governance- so that corporations can be viewed as state-like, but the big difference is that they do not have the democratic framework or channels that constitute a real democracy.

Chapter 1: The Social Life of Worldly Things
Quotes & Reflections

"The concept... shows that it consists of a sequence of actions, a series of operations that transform it, move it and cause it to change hands, to cross a series of metamorphoses that end up putting it into a form judged useful by an economic agent who pays for it" (7).

** Daniel Miller "key innovation has been to regard consumption as a form of labor or work: practical activity in which people meet an object world that confronts them as external and foreign and through which they fashion objectifications of themselves as social beings recognizable to themselves and to others. Miller thus resolves the existential dilemma of Marx's alienated worker, but in the realm of consumption rather than production" (11).

"It is through consumption work that people - often denied the opportunity to do so in their employment - project and contemplate themselves in an object world of , at least in part, their own making" (11).

"[Coca-Cola is] a master symbol of the consumerist ethic, a pause for self-indulgence" (14).

"Thomas's strategy reminds us that cross-cultural consumption is a multi-directional process or, to anticipate, that meanings and qualifications are being generated by all the agents assembled in a network of production, distribution, and exchange, a commodity or product network" (17).

"there is no guarantee that the intention of the producer will be recognized, much less respected, by the consumer from another culture" (17, quoting David Howes).

"The more completely commodities of exogenous origin are assimilated to a new social setting - perhaps they do not even strike anyone as foreign or out-of-place - the more such settings conceal social relations acting at a distance, much as Marx argued that all commodities conceal the social relations of their production" (18).

"these creative acts of reembedding unfold within a definite set of power relations that link local cola consumption to diverse national and transnational networks" (20, referencing Moffett).

"Consumption is under these circumstances a potential site of conflict since consumers must work with or against the localization or domestication strategies of corporations and their advertising agents" (24).

"Market research, including commercial ethnography, now plays a significant role in this process of capture or reappropriation - a process which can be seen as an organized attempt to short circuit the possibility of using commodities in ways for which they were neither designed nor advertised, to regulate the possibilities of qualification. Consumption work, the realization of specific use values in specific contexts, thereby becomes a potential source of value for brand owners" (29).

Personal Reflections:

1.) The world of objects obscures the processes of internalization, in which outside, external objects are immediately digested by individuals, between individuals and through fluid dialectical relationships between people and objects.

Chapter 2: Globalization, Citizenship, and the Politics of Consumption
Quotes & Reflections

"With the appointment of Douglas Daft as CEO in 2000, the company announced a renewed concern with the local, a withdrawal from an aggressively singular global strategy of marketing and a heightened sensitivity to multiple local differences in taste and preferences. This new or revived concern for the local also implied a significant reorganization of corporate structure, a decentralization of decision-making intended to make operations more responsive to fast changing local situations" (35).

"This joint venture between state and market actors reproduced an alliance that helped to expand consumption and to subsidize production of sugar in the eighteenth century" (38).
"The global high-sign campaign campaign thus signaled a transitional moment in the history of The Coca-Cola Company, a transition from being a national company to a multinational or global company - a transition not only in business operations, but also in self-perseption. It also signaled how globality was to be conceived, namely, as multilocality: a diversity of local places and customs organized within a common framework of agreed upon values" (43).
"The encounter with global modernity is here envisaged in elite cultural nationalist terms, even if articulated by a transnational corporation; the result is not Western monoculture but a distinctive national culture made out of the best features of diverse local traditions and global commodities" (46). (What does Foster mean by "best features"?)
Personal Reflections:

1.) Resistance to Coca-Cola, as a product and as a brand, has taken on a variety of forms, occurring primarily on the local level (although some local struggles have been internationalized). As Foster mentions, the Coca-Cola Company, under Daft's leadership, re-oriented their marketing strategy towards a more local approach. Part of this marketing project has included attempts to contain localized interpretations and reimaginations of the product and the brand. A localized marketing strategy helps the company to anticipate consumer demands and to control the dialogue and social organizations around the product. One way to address and process localizations is through Corporate Social Responsibility campaigns.

2.) Alliances with the state have proved profitable for Coca-Cola in the past. Foster mentions how Coca-Cola was able to arrange a contract with the U.S. government to supply Coke products to U.S. soldiers abroad, which increased production and consumption significantly (and was how Coca-Cola was initially introduced to New Guinea).

3.) Although Coca-Cola attempts to be viewed as a part of local culture, and not as an imperial force, some of Coke's initial bottling plants in Latin and South America were established in concert with other U.S. multinationals (eg United Fruit Company in Guatemala) or as a result of U.S. military operations (eg New Guinea).

Press Release: CCC Joins Business Leaders Initiative on Human Rights, 2007

Media Relations
Department
P.O. Drawer 1734,
Atlanta, GA 30301
Telephone (404) 676-2121

FOR IMMEDIATE RELEASE The Coca-Cola Company Joins Business Leaders Initiative on Human Rights

ATLANTA, (August 23, 2007) -- The Coca-Cola Company announced today that it has joined the Business Leaders Initiative on Human Rights (BLIHR), a group of companies examining how best to apply human rights principles in the business context.

The Company's support for BLIHR was expressed in a letter sent by E. Neville Isdell, chairman and chief executive officer of The Coca-Cola Company, to Mary Robinson, Honorary Chair of BLIHR.

"At The Coca-Cola Company, we believe that an unwavering commitment to human rights is fundamental to the way we conduct our business. In our Company's Human Rights Statement and Workplace Rights Policy we pledge to manage our business around the world in accordance with the highest standards of integrity with a specific emphasis on the rights of individuals in the workplace," said Neville Isdell, Chairman and CEO of The Coca-Cola Company. "We look forward to building our own understanding of how best to uphold human rights within our workplaces and to actively participating in and contributing to BLIHR's important work."

The Business Leaders Initiative on Human Rights (BLIHR) was founded in 2003 by seven companies and is chaired by Mary Robinson, former President of Ireland and former United Nations High Commissioner for Human Rights. The Coca-Cola Company's announcement today brings the total number of members to 14. For more information on BLIHR, visit the organization's website at http://www.blihr.org/.

"The Coca-Cola Company joining BLIHR represents a real opportunity to demonstrate the universality of human rights across all nations," said Mary Robinson, Honorary Chair of BLIHR. "We are excited by this and look forward to the serious work ahead, in particular exploring the business and human rights context of emerging economies."

BLIHR is an international business-led initiative designed to help lead and develop the corporate response to human rights. Its primary aim is to find "practical ways of applying the aspirations of the Universal Declaration of Human Rights within a business context and to inspire other businesses to do likewise". The Initiative has reported annually on its progress towards its publicly stated mission and works closely with many other businesses, governments and civil society organizations.

***The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most valuable brand, the Company markets four of the world's top five soft drink brands, including Diet Coke®, Fanta® and Sprite®, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.3 billion servings each day. For more information about The Coca-Cola Company, please visit our corporate website at http://www.thecoca-colacompany.com/. The Business Leaders Initiative on Human Rights (BLIHR) is a business-led program to help lead and develop the corporate response to human rights. For more information about BLIHR, visit the organization's website at http://www.blihr.org/.

Contacts: The Coca-Cola CompanyKerry Kerr, 1-404-676-3676 kekerr@na.ko.comBusiness Leaders Initiative on Human RightsOn This Release: John T. Morrison, +33 7889 684 948, john.morrison@blihr.orgGeneral BLIHR Inquiries: Sam Hoskins, +44 1621 859 086, sam.hoskins@blihr.org

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Press Release: CCC Releases Annual Corporate Responsibility Review, 2007

FOR IMMEDIATE RELEASE Contact: Lisa Manley (404) 676-4571
THE COCA-COLA COMPANY RELEASES ANNUAL CORPORATE RESPONSIBILITY REVIEW

ATLANTA, Sep. 4, 2007 – The Coca-Cola Company announced the
release of the online version of its 2006 Corporate Responsibility Review. The report is available at www.crreview.coca-cola.com.

The report explores the relationship between sustainable business and sustainable communities, with detailed information about the Company's performance in the areas of workplace and human rights, product quality, wellbeing, water stewardship, energy and climate protection and sustainable packaging around the world.

"At The Coca-Cola Company, we are committed to making a positive mark on communities and minimizing our impact on the planet," said E. Neville Isdell, chairman and chief executive officer, The Coca-Cola Company. "Together with our bottling partners, suppliers and others, we are working to improve lives, fuel local economies and protect the environment. That is the mark we want to make."

Guided by Global Reporting Initiative (GRI) indicators, the report contains the Company's first GRI index, cross-referenced with United Nations Global Compact principles. The report covers the Company's corporate responsibility performance from January 2006 to July 2007, taking an issues-based approach. Recognizing that reporting needs to include more-quantifiable metrics and targets, especially as they relate to social and economic performance; the Company has provided a detailed summary of performance metrics in the report. The Company continues
to work toward mapping and prioritizing material issues and implementing necessary systems and targets to gauge performance and gather data globally.

Stakeholder concerns and feedback influenced the development of the report.
Highlights from the 2006 report include:
• Summary of performance and progress on workplace, marketplace,
environment and community initiatives and commitments
• Review of challenges and opportunities for the Company's corporate
reporting
• Overview of the Company's Workplace Rights Policy, Human Rights
Statement and Supplier Guiding Principles, which reflect the Company's
values and commitment to international human and labor rights principles
• Overview of global quality management system
• Overview of environmental performance in the areas of water stewardship,
energy and climate protection and sustainable packaging
• Examples of sustainability initiatives and programs in six of the Company's
operating groups

The Coca-Cola Company welcomes feedback on the report, which may be sent to crreview@na.ko.com.

The Coca-Cola Company The Coca-Cola Company is the world's largest non-alcoholic beverage company. Along with the Coca-Cola® trademark, recognized as the world's most valuable brand, the Company markets four of the world's top five nonalcoholic
sparkling beverage brands, including Coca-Cola®, Diet Coke®, Fanta® and Sprite® beverages, and a wide range of other non-alcoholic beverages, including diet and light beverages, waters, juices and juice drinks, teas, coffees, energy and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.4 billion servings each day. For more information about The Coca-Cola Company, please visit our website at www.thecoca-colacompany.com.

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Business Profile, Corporate Responsibility Review 2007

Press Release: Coca-Cola Annual Environmental Report 2007

FOR IMMEDIATE RELEASE Contact: Lisa Manley,(404) 676-4571

THE COCA-COLA COMPANY RELEASES ANNUAL ENVIRONMENTAL REPORT
Reductions in Water Use Ratio, Investments in Closed Loop Recycling Plants,and Continued Progress on Sustainable Refrigeration Demonstrate Commitment to Environmental Performance

ATLANTA, July 26, 2007 --
The Coca-Cola Company today announced the release of its 2006 Environmental Performance report, documenting the Company's ongoing commitment to sustainability. Results were reported in three principal areas of environmental responsibility: water stewardship, sustainable packaging and energy and climate protection.

The report includes data gathered from 775 facilities around the world, representing 94 percent of the Coca-Cola system's sales volume in 2006. "We are pleased to show progress in our efforts to continuously improve our environmental performance," said Jeff Seabright, vice president, Environment and Water Resources, The Coca-Cola Company. "We know what has sustained our Company for our first 12 decades will not be sufficient for the future, and we recognize our success, and the future of the communities where we operate, are impacted by the actions we take today."

Highlights of the Company's environmental performance during 2006 as outlined

in the report include:

Global Water Stewardship
As sales volume increased 4 percent, the system achieved a 3 percent improvement in water use efficiency. Coca-Cola plants used an average of 2.52 liters of water to make one liter of beverage, as compared to 2.59 liters in 2005 and 2.72 in 2004. Since 2002, the Coca-Cola system has improved water use efficiency by more than 19 percent.

In 2006, 83 percent of Coca-Cola facilities met the Company's wastewater standard. While water is treated currently to comply with local regulations and standards, the Company has wastewater treatment standards that are more stringent than applicable laws in many parts of the world. The Company has committed to achieve 100 percent compliance by the end of 2010.

Working in partnership with a host of non-governmental organizations and government agencies, Coca-Cola has established nearly 70 community-based water initiatives in 40 countries, such as rainwater harvesting projects in India. The Company also continues to support the Global Water Challenge, an initiative of the United Nations Foundation which supports projects that provide safe drinking water, sanitation and hygiene education in the developing world.

Additionally, the Company co-developed a comprehensive water efficiency tool box with World Wildlife Fund (WWF) in 2006 which will be used throughout its global system to benchmark data to set specific water-efficiency goals.

Sustainable Packaging
The Company's efforts in the area of sustainable packaging focus on using less and re-using more. At present, the majority of the Company's primary packaging is returnable, bulk or made from commonly recycled materials like aluminum, PET, and glass. In 2006, the Coca-Cola system advanced its sustainable design efforts (known as e3) which focus on improving efficiency, lifecycle effectiveness and eco-innovation of the Company's packaging. These efforts led to a reduction in weight and improvement of the impact resistance of the Company's most recognizable package – the glass contour bottle. This initiative saved 89,000 metric tons of glass last year alone, the carbon dioxide equivalent of planting more than 13,000 acres of trees.

In late 2006, The Coca-Cola Company and Coca-Cola Enterprises, Inc. established Coca-Cola Recycling LLC to address the growing opportunities related to recycling in the United States. The Coca-Cola system also recently began building a global online inventory of primary, secondary and transport package systems by sales and weight. This database will allow the Company to measure performance more effectively and assess progress toward longer term goals.

The Coca-Cola system also continued to invest in closed loop recycling plants. In 2006, Coca-Cola Beverages Austria finalized a €15 million investment partnership to build the country's first bottle-to-bottle recycling plant. The plant, which will begin operations in 2007, will have capacity to provide 6,000 tons of recycled PET plastic material for use in new bottles.

Energy and Climate Protection

The Coca-Cola system's primary energy and climate impact is due to vending machines and coolers, manufacturing and fleet/transport. In 2006, the Coca-Cola system experienced a 10 percent increase in total energy use, due in part to its expanding global operations in less developed nations and the types of beverages produced. Despite this increase and the fact that year-to-year improvements have leveled off, the Company's energy and climate protection performance overall has improved significantly, with a 16 percent improvement in the system's energy use efficiency since 2002.

The Coca-Cola system has made continual progress in efforts to employ commercially viable HFC-free refrigeration technologies. In 2006, the Company announced it had achieved the conversion to HFC-free insulation for more than 1,300 models of refrigeration equipment, representing over 98 percent of the new equipment the system purchases. The Company also continued to invest in carbon dioxide refrigeration. By the end of 2006, 6,000 units with carbon dioxide refrigeration had been placed in markets throughout the world.

The Company also continued to address energy consumption of refrigeration equipment. By the end of 2006, approximately 200,000 units of a proprietary Energy Management System had been placed in the system. The combined annual energy reduction associated with this technology is estimated to be more than 250 million kilowatt-hours, with a corresponding greenhouse gas reduction of more than 100,000 metric tons.

About the Annual Environmental Report

The report was independently reviewed and verified by environmental auditors BECO Group, following the ISO 19011 general principles of environmental auditing and audit procedures for international standards. The company also applied principles of the Global Reporting Initiative (GRI) and the AA1000 assurance framework.

The report, as well as more information and case studies on Coca-Cola's environmental efforts, are available at www.environment.coca-cola.com.

The Coca-Cola Company

The Coca-Cola Company is the world's largest non-alcoholic beverage company. Along with the Coca-Cola® trademark, recognized as the world's most valuable brand, the Company markets four of the world's top five nonalcoholic sparkling beverage brands, including Coca-Cola®, Diet Coke®, Fanta® and Sprite® beverages, and a wide range of other non-alcoholic beverages, including diet and light beverages, waters, juices and juice drinks, teas, coffees, energy and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.4 billion servings each day.

For more information about he Coca-Cola Company, please visit our website at www.thecoca-colacompany.com


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Colombia and India Updates, Corporate Responsibility Review 2006

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