Oxfam America releases poverty footprint analysis on the SABMiller/Coca-Cola value chain in El Salvador and Zambia
29 March 2011
Today Oxfam America, The Coca-Cola Company, and SABMiller released an in-depth study about the economic and social impact of The Coca-Cola Company and SABMiller value chain on communities in El Salvador and Zambia.
View Exploring the Links between International Business and Poverty Reduction
The report is based on the Poverty Footprint methodology being developed by Oxfam that provides a framework for measuring private sector impacts on communities. The methodology looks across value chains to provide a comprehensive understanding of how companies are impacting sustainable livelihoods, health and well-being, diversity and gender, empowerment, and security and stability, all key dimensions of poverty. The report details positive impacts The Coca-Cola Company and SABMiller are having in both countries, including job creation, the development of entrepreneurial skills and technical training. The report also includes recommendations for workplace improvements, along with improvements in areas such as gender, water and opportunities for small businesses.
"Transparency and collaboration by civil society, governments and private sector represent the greatest long term hope for sustainable solutions to poverty," said Raymond C. Offenheiser, President, Oxfam America. "Oxfam believes that sharing this important information can help build a foundation for people in these communities to create solutions that work best for them. We will ultimately measure the success of this and future Poverty Footprints by the extent to which the studies empower stakeholders and catalyze the private sector to make positive change."
"The Poverty Footprint Report has been an important process," said Sue Clark, Corporate Affairs Director, SABMiller. "But what really matters is how we deliver sustainable livelihoods on the ground. SABMiller's local bottlers will be convening local dialogues to understand which of the recommendations can be practically implemented. "
The report recommends follow-up actions and improvements in the agricultural stage and supply chain. Specific recommendations include ensuring the effective recognition of the right of collective bargaining, increased business training and recruitment of women, and extending the watershed protection programs SABMiller and The Coca-Cola Company have elsewhere in the world to El Salvador and Zambia amongst others.
"This collaboration between Oxfam America, The Coca-Cola Company and SABMiller is born of a mutual interest in understanding how business impacts communities around the world," said Clyde Tuggle, Senior Vice President, Global Public Affairs and Communications, The Coca-Cola Company. "By opening our doors to Oxfam America, we hope to be a model for increased corporate transparency and public-private partnership. We take the content of this report seriously and we will consider its recommendations with our bottling partner, SABMiller and our stakeholders, as we strive to create sustainable businesses in El Salvador and Zambia."
Over the past 30 years, the private sector has been a primary driver of economic growth and poverty reduction in developing countries. Increasingly the development community has recognized the significant role the private sector can play when business and social benefits align. Both companies and the development community can benefit from knowing how businesses and markets impact communities in developing countries.
"The fact that The Coca-Cola Company and SABMiller underwent such a detailed footprinting is in itself remarkable - this is a true example of stakeholder engagement," said Georg Kell, Executive Director of UN Global Compact. "The true value of this effort will be realized in two, three or five years, when we see how these organizations have built on the report to address these issues and ultimately benefitted many people around the world."
About Oxfam America
Oxfam America is an international relief and development organization that creates lasting solutions to poverty, hunger and injustice. Together with individuals and local groups in more than 90 countries, Oxfam saves lives, helps people overcome poverty and fights for social justice. Oxfam America is one of the 14 affiliates in the international confederation, Oxfam. For more information about Oxfam and the Poverty Footprint methodology, please visit www.oxfamamerica.org/povertyfootprint.
About The Coca-Cola Company
The Coca-Cola Company is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca-Cola, the world's most valuable brand, the Company's portfolio features 14 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply and Georgia. Globally, we are the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of 1.7 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, support active, healthy living, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. For more information about our Company, please visit our website at www.thecoca-colacompany.com.
SABMiller plc is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world's largest bottlers of Coca-Cola products.
In the year ending 31 March 2010, the group reported US$3,803 million adjusted pre-tax profit and group revenue of US$26,350 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.