By: Yessica Morales, Editor

The investors represent more than $140 billion in combined assets.

At Coca-Cola’s Annual Investor Meeting, shareholders presented five proposals, four of them around the company’s political activities, in order to make transparent its financing and advocacy actions through its philanthropy, sponsorship of science, lobbying and other activities.

The proposals voted revolve around: knowing the impact of their corporate practices on employees and populations of color, the mismatch of values in their political and environmental spending; lobbying, corporate policies or actions that seek to limit women’s reproductive rights and lack of transparency around their global political activities.

In that regard, Marcos Arana, of the Center for Training in Ecology and Health for Campsesinos and Defenders of the Right to Health (CCESC-DDS A.C), who also works in indigenous communities in Chiapas, was responsible for presenting the arguments on the importance of the transparency initiative around their global political activities.

From my work in indigenous regions, I can see that Coca-Cola’s lack of political transparency not only has implications that should concern its shareholders, but are associated with life and death,” the doctor declared.

Likewise, he added that the long history of Coca-Cola’s political activity in Mexico, and of its Mexican subsidiary FEMSA – with its opposition to the soda tax, better frontal labeling and its continuous political maneuvering to continue overexploiting water reserves in San Cristóbal de Las Casas, Chiapas – continues to provoke disapproval of the population.

With 26,000 signatures, pressure continues to revoke the concession to FEMSA-Coca Cola of San Cristóbal de Las Casas

He added that a recent survey revealed that one-third of indigenous children are given Coca-Cola before they turn one. Well, in Chiapas, due to aggressive marketing, it is easier to find this soft drink than any healthy food.

The addictive high consumption of the soft drink contributes to increased mortality and diabetes rates among indigenous communities. The company derives a large part of its income from sales to this population.

It is important for shareholders and the public to understand that a significant portion of Coca-Cola’s political expenses in Mexico are tax deductible. The more it spends on awards, donations, and other politically motivated corporate responsibility (CSR) actions, the less taxes the corporation pays. This mere fact implores the need for more transparency, Arana said.

He added that the corporation is trying to hide a health crisis fueled by Coca-Cola and the need for better health laws. Moreover, by ceasing to disclose its political financing, it is telling the public that it has something to hide.

It wants to hide how it is putting access to water for the residents of San Cristobal de Las Casas at risk. It wants to hide the damage that its aggressive commercial practices have unleashed on the health of indigenous children. They want to hide their lobbying and corporate social responsibility actions that prevent us from confronting these threats. Who would feel good about investing in a corporation that has so much to hide?” he said.

On the other hand, political activities face increased statistics globally, as it sponsors climate change talks and plays a leading role in the United Nations World Water Conference.

Arana explained to the company’s shareholders how the Coca-Cola corporation’s capture of politics in Mexico is known and documented for public opinion, through the investigation and reporting of Las fichas de Coca-Cola, which received the FETISOV International Journalism Award 2022.

To this is added the pronouncement of government child protection institutions, as well as international agencies that have expressed the need for children to develop in healthy environments: they also rejected the conflict of interest and interference of this type of industry in public health policies.

For the sake of the children of Chiapas and for the integrity of this corporation and your investment in it: I kindly ask you to support this resolution, as well as the full list of complementary shareholder proposals before you today.

Meanwhile, Coca-Cola’s Board of Directors recommended that its shareholders vote against all the proposed recommendations, which called on the corporate to conduct investigations, audits and/or public transparency reports on its policy actions that affect diversity, inclusion and equity in the United States and policies in other countries around the world.

Finally, in the voting, the initiatives received the approval of between 13% and 30% of the shares of the corporation, lacking the majority required for their adoption, but sending a strong message to the company, its shareholders and the world, that there is a demand inside and outside the company to recognize the implications of its action and political financing and make them transparent.

Originally Published in Spanish by Chiapas Paralelo, Sunday, June 11, 2023, https://www.chiapasparalelo.com/noticias/chiapas/2023/06/falta-de-transparencia-politica-de-coca-cola-estan-asociadas-con-la-vida-y-la-muerte/ and Re-Published with English interpretation by the Chiapas Support Committee