Coca Cola Study

Human Rights
Impact Assessment
(HRIA)
Human Business and Responsibility

December 2022

SCENARIO 3
GROUP 43
Table of Contents

Introduction 3

I - Human rights, a need to approve

fundamental texts and understand the 4
issues.

II - Coca Cola, a giant raising human

6
rights issues

III - Human Business challenges and

8
solutions

Conclusion 10

Sources 11
 Introduction
Drinks Management

There is no doubt that water is a valuable resource that we are not able to survive
without. It is essential for drinking, sanitation, and most importantly for our survival, but
it is not available in every country. There are some places on the planet where water is
scarce, and there are places where there is not enough because of the drought. The
Coca-Cola Drifts project was designed with the intent of providing clean water to
communities throughout Africa that are in need of it.

This project was initiated by Coca-Cola in partnership with the World Wildlife Fund
(WWF) in order to help the people in these communities as well as to provide clean
water that can be used for drinking as well as for other needs such as irrigation and
sanitation. Several communities across Africa have benefitted from the Coca-Cola Drifts
project since it has provided them with a reliable source of clean water by utilizing
technologies such as rainwater harvesting systems, boreholes, desalination plants, and
other technologies that can enable them to rely on a sustainable supply of clean water.

The Coca-Cola Company is a multinational beverage company that has been in operation
for over 130 years. The company has a long history of providing drinks to consumers
around the world. However, the company faces many challenges and risks in its
operations, including financial challenges and water management. Coca-Cola is also
faced with human rights risks that could have impacts on Human Resources. and
Environmental, Health, and Safety initiatives.

In this report, directors are given advice on how to deal with global drink issues as part
of the overall management of the company. Consequently, we will be able to address
the following questions in a better way: How does Coca Cola negatively affect human
rights and what can Coca Cola do to reverse its negative impacts and contribute to
promoting human rights?

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 I - Human rights, a need to
approve fundamental texts and
understand the issues.
Respecting human rights is nowadays a necessity, even if the way to incentivize
companies to do so is a theoretical question, the answer has very practical implications.
Indeed, we have recently seen the scandal that broke out over the Uyghur population,
exploited by the Chinese government and thus taking advantage of international
companies like Inditex. Despite the fact that the international organization published a
report acknowledging the crimes against humanity, the international community is not
acting quickly enough. It paves the way for meaningful and concrete actions by Member
States, United Nations committees and businesses. Some actors prefer to neglect this
question, but the reality is nevertheless before us: Who is responsible for human rights:
States or companies, both or the others?
Beyond that, it must be understood that we are all rights holders and actors of rights,
each with a responsibility in the respect of human rights. Returning to the example of
the forced labor of the Uyghurs, we have seen a general call for a boycott from the
accused brands, which shows that everyone's involvement is possible. Moreover, one
can wonder the origin of the nature of their responsibility: voluntary or obligatory, or
both?
Eleanor Roosevelt presented it explicitly in 1958: universal human rights begin in small
places, close to home.

Firstly, it would be important to define human rights, as well as what constitutes them.
According to Marks, human rights could be defined by the constitution of “a set of
norms governing the treatment of individuals and groups by states and non-state actors
on the basis of ethical principles regarding what society considers fundamental to a
decent life” (2016). We understand that they are what we need to live in peace and
dignity, having basic needs met. Human rights precede and underpin the Sustainable
Development Goals (SDGs), which are different objectives to struggle against
inequality, poverty and environmental issues. However, human rights are not defined
by just one aspect, but by a multitude. Especially with regard to ethics, human rights
allow us to build empathy and altruism in human behavior. As human beings, we are all
eligible for human rights because of our common "humanness". Concerning social
claims, a part of the population is committed to defending human rights by challenging
power relations, inequalities and injustices. More generally, human rights result from
the body of international law, included in the Universal Declaration of Human Rights
(1948). This key document that has marked the history of human rights allows a perfect
completeness of universality, based on the participation of practically all nations in the
process of creating standards. However, it is interesting to note that human rights are
changing, notably with the abolition of slavery in 1848 in France, for 1980 in
Mauritania.
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To continue, we will ask ourselves why a company has an interest in respecting human
rights. Since 1990, human rights are no longer voluntary, but mandatory. In particular,
the creation of the United Nations Guiding Principles on Business and Human Rights
(UNGP) encourages companies to take responsibility for their actions. This 31-article
instrument encompasses three pillars outlining how states and businesses should
implement the framework. Examples include the state's duty to protect human rights,
the corporate responsibility to respect human rights and finally access to remedies for
victims of business-related abuses. There is also the International Labor Organization
(ILO), created in 1919, prior to the United Nations. Its constituent conventions aim to
promote decent work for all workers, wherever they work. It has a "tripartite"
framework, working with business, states and workers. We spoke just before about the
UNGP, which certainly makes it possible to compel companies to respect human rights,
but what about legal sanctions? Indeed, law enforcement and corporate accountability
have often been difficult for the United Nations and human rights should no longer be a
pipe dream. The Bill of Human Rights aims to strengthen the power of existing treaties
and conventions in terms of universal human rights. However within these texts and
conventions, we always focus towards the State or the company, but never who suffers,
people. There has therefore been a need for several years now to understand the point
of view of potentially affected individuals and groups, especially with Human Rights
Due Diligence (HRDD). This managerial practice within companies helps to assess risks
in finance, business practice, mergers and acquisitions. This due diligence is people-
oriented and reflects the right of every human being to be treated with dignity. It
therefore involves relationships between a company and those on whom it can have an
impact.

After having studied and defined human rights, we will look at the current problems
that we observed. Indeed, many crises are underway whether they are geopolitical,
environmental or social. We have to adapt to the changing environment, but some
consequences are irreversible. We note common violations of human rights in
companies as we have seen previously with the exploitation of the Uyghurs. However,
other current issues threaten the stability of the world. Indeed, the contamination of
water by pollution, as well as unprecedented droughts affect the preservation of human
rights. In addition, supply chain workers in the area of ​health and safety, child labor and
their exploitation in sweatshops, make up the modern slavery that is today denounced
in the press and by many Non Governmental Organizations (NGO). According to the ILO,
it would seem that it has greatly increased over the past five years, accounting for
nearly 50 million forced laborers. These estimates show the urgency and irreversibility.
Regarding the news around countries hit by drought, we could illustrate the example of
India. Indeed, India is suffering from global warming and drought, especially in the
central region of Bundelkhand. The government has not preserved nature, especially
trees and hills. Water bodies have been destroyed by office buildings and dwellings,
with extensive underground mining of large ones leading to a drying up of the water
table.
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 II - Coca Cola, a giant raising
human rights issues
Coca Cola study
Founded in May 1886 in Atlanta (where its headquarters are located), in the United
States, The Coca Cola Company is known for its famous non-alcoholic drink : Coca Cola,
or shortened as Coca in Europe, Cola in Asia or Coke in America. The company has a lot
of well-known brands under his possession, 38 if we are being precise, such as, of
course Coca Cola, but also Sprite, Minute Maid, Fanta, Nestea and PowerAde. The
company offers a large panel of drinks from the sparkling drink to the water, juices, milk
drinks and also specialized beverages for athletes. With a proposition of more than 250
different drinks, The Coca Cola Company is one of the largest worldwide companies in
the drink market.
Even as the time flies, the company
succeeds in keeping the lead of the
market with a constant volume growth. In
2020, the company was recording a Net
Operating Revenues of 33 billions of
dollars and a Market Capitalization worths
235.9 billion of dollars. As said before, the
Coca Cola Company is made of different
brands, and even if Coca Cola is occupying
at least 45% of the company’s retail
value, the rest is divided
between healthy drinks, sporty drinks and sparkling drinks. But the company is not only
about the name of this famous brown sparkling drink, it is also about their partners,
more than 225, their employees, more than 700K, of course their customers, around
30M and also about their international dimension. The Coca Cola Company is making
most of its sales in Europe, Middle East, Africa (28%) and America Latina (28%) but is
also quite constant with 23% of its global unit case volume in Asia Pacific and 18% in
North America.
The company’s system is articulated
around sharing opportunity and 6
notions which are the passion for
consumers, the innovation, the
Marketing, the governance, the
manufacture and the distribution.
The company is clear about their
knowledge of to whom they depend,
which inputs (such as consumers,
raw materials and reusable material
for example).

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In order to make all of those possible, the company needs investors and the Coca Cola
Company can count at its side some of the biggest investing and fund management
companies in the world as shareholders such as BlackRock Fund Advisors, The
Vanguard Group or also JPMorgan.
The purpose of the brand is pretty clear and well-known from every part invested
somehow in the company with their statement : “Refresh the world and make a
difference”.

With the third place in 2020 of the ranking of the Top 10 beverage worldwide companies
by revenue, The Coca Cola Company is one of the most influential of its time. But that
much impact goes with responsibilities and setting the example.
With more than 900 bottling and manufacturing facilities across the world, Coca Cola
has some of the world’s fastest production lines. That way, the company is able to
propose really short-production circuits and local productions. The process of
production starts with the water treatment, then the syrup made with sugar and water,
to finish with the bottling, filling and packaging. For the Coca Cola drink, a lot of water is
needed, 5 liters of water for 1 liter of Coca Cola at the end actually. But depending on
the country where it is produced, some issues are highlighted. In fact, the production of
the drink in developing countries, with few access to pure water, or simply water at all,
notices that compared to the responsible, respectful and sustainable behavior the
company is claiming, the reality is pretty different and can hurt local farmers and
populations who need this water to live. With 58 water-intensive bottling plants in India,
the company has seen some accusations about the way their production was drying up
groundwater and local wells. Those facts have consequences, forcing residents to rely
on the government's water supply trucks. The local farmers have been in real difficulties
without water for their cultivations leading to hunger for the families but also for the
villages. The company is also accused of using pesticides and fertilizers which can be
really dangerous for locals’ cultures and health. Those accusations have a direct impact
on the company but also on all of the stakeholders such as shareholders, investors,
suppliers, distributors and others. And it has a big impact on their reputation too.

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 III - Human Business challenges
and solutions
Coca Cola study part 2
Human rights risks are pervasive in the
Coca-Cola industry. The Coca-Cola
Company has long been criticized for its
labor practices, with reports of exploitative
working conditions, inadequate wages and a
lack of respect for human rights. In
addition, bottling plants have been accused
of polluting local water sources and of
failing to protect the health of workers and
their families. The Coca-Cola Company has
taken a number of steps to address these
risks, including developing a Human Rights
Policy in 2008. The policy outlines the
company's commitment to respecting
human rights throughout its value chain and
sets out the company’s expectations for
suppliers and business partners. The
company has also developed a Human
Rights Impact Assessment process to
identify, assess and address potential
human rights risks in its operations and supply chain. The company has also implemented
several programs to improve working conditions and protect the health of its workers,
including providing training on health and safety, labor standards and other topics related
to human rights. In addition, the company has engaged in the development of initiatives
to improve water access and quality in communities near its bottling plants, as well as to
reduce its own water use and wastewater discharges. Finally, the Coca-Cola Company has
made a commitment to transparency and to engaging with stakeholders, including civil
society organizations, in order to address potential human rights risks and to share
information on its efforts to promote responsible practices.
As a result, we have assembled a list of the 10 most important issues related to the
management of water and beverages :

1. Discrimination: The production, distribution, and sale of drinks can lead to

discrimination based on race, gender, and other characteristics. This can lead to a
hostile work environment and can even result in legal action if the discrimination is not
addressed.
2. Unfair Wages: Many workers in the drinks industry are paid less than a living wage,
making it difficult to support a family or meet basic needs.

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3. Poor Working Conditions: Many workers in the drinks industry are exposed to
hazardous conditions, including exposure to dangerous chemicals, long working hours,
and lack of safety measures.
4. Forced Labor: The production and distribution of drinks can involve forced labor,
which violates the human rights of workers.
5. Health and Safety Risks: Workers in the drinks industry are often exposed to
hazardous materials, including pesticides and other chemicals, which can lead to long-
term health problems.
6. Exploitation of Natural Resources: The production and distribution of drinks can
lead to the exploitation of natural resources, such as water, and can have a negative
impact on the environment.
7. Deforestation: The production and distribution of drinks can lead to deforestation,
which can have a negative impact on the environment.
8. Pollution: The production and distribution of drinks can lead to air, water, and soil
pollution, which can have a negative impact on the environment and human health.
9. Displacement of Communities: The production and distribution of drinks can lead to
the displacement of local communities, leading to the loss of traditional livelihoods and
cultural practices.
10. Child Labor: The production and distribution of drinks can involve child labor, which
is illegal and violates the rights of children.

For the purpose of avoiding or solving these issues, we recommend that you:
1. Developing a Human Rights Policy: Creating a human rights policy for Coca Cola is
an important step for the company to ensure that it is adhering to international
standards for human rights. This policy should include guidelines for the company’s
employees, suppliers, and customers.
2. Addressing Water Management: Water is one of the most vital resources for Coca
Cola’s production and the company must ensure that its water supply is managed
sustainably. This can include initiatives such as reducing water usage, reusing water,
and investing in water technologies to reduce the company’s water footprint.
3. Investing in Financial Solutions: Coca Cola must ensure that its financial
infrastructure is capable of meeting its current and future needs. This includes investing
in innovative financial solutions such as digital payments, blockchain technology, and e-
commerce.
4. Promoting Employee Well-Being: Coca Cola must ensure that its employees are
respected and treated fairly. This includes providing a safe working environment,
offering adequate benefits, and ensuring that workers are paid a fair wage.
5. Supporting Local Communities: Coca Cola should strive to be a good corporate
citizen and support local communities where the company operates. This can include
initiatives such as providing education, promoting economic development, and investing
in local infrastructure.

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 Conclusion
The Coca-Cola Company has made great
strides in its water management
practices and in its commitment to
human rights and business responsibility.
The company’s commitment to
sustainability has been demonstrated
through its long-term investments in
water conservation, water quality and
access, wastewater treatment, and water
replenishment. Coca-Cola also has a
commitment to respecting human rights,
including the right to water, and has
implemented initiatives and programs to
support this commitment. Despite these
efforts, however, there is still much work
to be done to ensure that the company’s
water management practices are in line
with global standards and that human
rights are protected and promoted. To
this end, the company should continue to
invest in its water management efforts,
such as water conservation, water quality
and access, wastewater treatment, and
water replenishment, and should work to
improve its transparency and reporting
practices. Additionally, the company
should work to ensure that its business Coca Cola's water
practices and policies do not lead to the
violation of human rights, such as the
right to water. Finally, the company
should engage in meaningful dialogue
with local stakeholders and communities
to ensure that their rights and interests
are respected and their perspectives are
considered. By taking these steps, the
Coca-Cola Company can continue to set
an example for other companies in the
world, and demonstrate its commitment
to protecting human rights and
promoting sustainable business
practices.

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Sources
-The Coca Cola Company, website (2022) “Company Information : At a glance”,
https://www.coca-colacompany.com/policies-and-practices/company-information-at-
a-glance

-Wikipedia, (11/12/2022, last modification) “Classement mondial des entreprises

leader par secteur”
https://fr.wikipedia.org/wiki/Classement_mondial_des_entreprises_leader_par_secteur

-Wikipedia, (01/11/2022, last modification) “The Coca-Cola Company”

https://fr.wikipedia.org/wiki/The_Coca-Cola_Company#Organisation

-Adam Shrum, Dynamic Inventory (11/12/2018) “The Coca Cola Supply Chain &
Manufacturing Process Explained”
https://www.dynamicinventory.net/coca-cola-supply-chain/

-Earth Talk, Thought Co (16/07/2019) “Coca-Cola’s Groundwater Pollution in India”

https://www.thoughtco.com/coca-cola-groundwater-depletion-in-india-1204204

-Arnaud Dumas, AD (01/09/2022) “Ouighours : l’ONU reconnaît les violations des droits
humains dans le Xinjang par la Chine”, pport-de-l-onu-reconnait-les-violations-des-
droits-humains-dans-le-xinjiang-151014.html

-United Nations, UN (2011) “Guiding Principles on Business and Human Rights”, Geneva
https://www.ohchr.org/sites/default/files/documents/publications/guidingprinciplesbus
inesshr_en.pdf

-Business and Human rights resource centre, BHRC (10/12/2022) “Uganda: Civil society
expresses concerns over East African Crude Oil Pipeline's (EACOP) land acquisitions and
environmental impacts; incl. TotalEnergies' response” https://www.business-
humanrights.org/en/

-International Labour Organization, ILO (12/12/2022) “50 millions de personnes dans le

monde sont victimes de l'esclavage moderne”, Geneva
https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_855062/lang--
fr/index.htm

-Richard Hiault, RH (30/08/2016) “Ces guerres de l’eau qui nous menacent”

https://www.lesechos.fr/2016/08/ces-guerres-de-leau-qui-nous-menacent-1112386

-Observatoire, website (26/02/2018) "Nouvelles tendances boissons : Coca Cola se

transforme en vendant de l’eau"
https://www.lemondedutabac.com/nouvelles-tendances-boissons-coca-cola-se-
transforme-en-vendant-de-leau/
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