Questions and Answers regarding Coca-Cola
(Updated January 15, 2008)
Why did the University of Michigan pursue a third-party, independent investigation of Coca-Cola in India?
In late 2004, the University initiated an inquiry into Coca-Cola's water management practices in India after U-M students and others raised concerns about the company's bottling operations in that country. The University's Dispute Resolution Board (DRB), a committee responsible for reviewing such complaints, recommended that further investigation be done to determine if there was any validity to the complaint about Coca-Cola products bottled in India containing pesticides.
Who assessed Coca-Cola's facilities in India?
The University and Coca-Cola agreed that The Energy and Research Institute (TERI), a New Delhi-based international research institute, would conduct the assessment. The Meridian Institute, an internationally recognized neutral, third-party organization with offices in Dillion, Colo., and Washington, D.C., convened and facilitated meetings between the parties. The organization also acted as an independent financial agent for the TERI report.
TERI, an autonomous, nonprofit organization established in 1974, focuses on the environment, biotechnology, forestry and sustainable development issues. TERI employs more than 300 professionals, drawn from a range of disciplines, at its headquarters, regional centers, and field sites in India and overseas.
For more information about TERI, visit teriin.org.
The Meridian Institute, a nonprofit organization, is a leader in neutral facilitation and conflict management services. Meridian has nearly 30 professionals working at local, state, national and international levels on an array of topics, including the environment, international development, natural resources, public health, agriculture, sustainability, science and technology, security and environment, and homeland security.
For more information about the Meridian Institute, visit merid.org.
What is the report called?
The report is titled "Independent Assessment of Coca-Cola Facilities in India."
Who developed the scope of work for the report?
When the scope of work was initially being developed, University of Michigan faculty and staff and Coca-Cola discussed what the report should cover to address the water management issues raised by the DRB. The University was specifically interested in TERI's findings related to the level of pesticides in Coca-Cola products bottled in India. The final scope of work was developed by TERI and Coca-Cola, with involvement from the Meridian Institute.
What did the report determine about the pesticide complaint brought to the DRB?
The report stated: "None of the pesticides as per the scope of work were found to be present in process water used for beverage production by the plants (or in treated effluent water discharged from the plants)."
To read an executive summary of the report or the entire report, visit http://teriin.org/cocacola.php
What is the University's response to the report?
The TERI report offers a complete and thorough analysis of Coca-Cola's bottling operations in India and clearly addresses the University's primary concern about pesticides in Coca-Cola products bottled in that country. This finding provides the University with the reassurance it needs to consider the pesticide issue in India resolved. Additionally, the University is pleased that Coca-Cola will be using the other findings contained in the TERI report to examine its bottling operations in India as well as around the world.
What is the status of Coca-Cola's business relationship with the University?
The University will continue to do business with Coca-Cola at this time.
How much business does the University do with Coca-Cola?
In fiscal year 2006-2007, the University had contracts for providing Coca-Cola products that totaled $1.2 million. Of that number, direct contracts account for approximately $360,000 while indirect contracts represent the remainder.
What other information does the TERI report contain in addition to the findings on pesticides?
The report, which is more than 500 pages long, is extremely detailed and examines many facets of Coca-Cola's bottling operations in India. It is not possible to provide a complete summary of the report as a short answer to this question. In brief, however, the report provides an overview of the methodology behind the assessment, information about the effect of Coca-Cola's bottling operations on the environment in India, perspectives on the situation from a variety of stakeholders, information on Coca-Cola and Indian standards for water consumption and treatment, as well as a series of recommendations and actions that the company can consider for its bottling operations in India. The entire report—or an executive summary—can be read at http://teriin.org/cocacola.php
Who paid for the report and fees incurred by TERI and Meridian?
The research project was billed to Meridian and paid for by Coca-Cola.
What is the status of the report on Coca-Cola's labor situation in Colombia?
The International Labour Organization (ILO), which is part of the United Nations, is conducting the assessment and has not indicated when its report will be released. When the report is released, the University will reassess its relationship with Coca-Cola.
For more information on the ILO, visit http://www.ilo.org/global/lang--en/index.htm
What is the Vendor Code of Conduct?
The Vendor Code of Conduct (VCC) was developed in Spring 2004 upon the recommendation of a task force composed of faculty, staff and students. In response to some complaints about the business practices of a small number of University vendors, the task force was appointed to review U-M's purchasing practices and recommend policies that would help encourage the University to do business with organizations that most closely share its ethical values.
The Vendor Code of Conduct states: "The ideal University-vendor relationship is in the nature of a partnership, seeking mutually agreeable and important goals. Recognizing our mutual interdependence, it is in the best interest of the University to find a resolution when responding to charges or questions about a vendor's compliance with the provisions of the Code."
What is the Dispute Review Board (DRB)?
The DRB was established to look into any formal complaints that the University's business partners may have violated its Vendor Code of Conduct. The DRB is chaired by a faculty member and includes two additional faculty members, two staff members and two students.