Poverty Footprint Study on how the Coca Cola - Oxfam America

It is projects such as this that could lead to a paradigm shift in the
way businesses and NGOs work together. Huge gains can be made
[for development] by these parties working together.
Director General of the Citizen Economic Empowerment Commission, Zambia
which a growing number of companies recognize they
are an integral part of the communities in which they
operate and their long-term business success is directly
connected to the success of the country as a whole. 18
Many companies are now closely monitoring their
value chains to ensure responsible practices and
to transfer knowledge and skills in a more inclusive
approach to their overall business. Through
microfinance opportunities and training, for example,
local entrepreneurs are given a greater opportunity
to develop successful businesses that can boost
their household income. This is particularly relevant
for women who, in many developing countries,
form the majority of small-scale entrepreneurs in
rural areas 19 and set up their own enterprises as
the only means by which they can make a living.
There is also an appetite among many companies
to create innovative business models, products
and services that recognize the needs of those
at the base of the pyramid and which have a
measurable development impact. 20 The provision
of diverse products and services at affordable
prices can both unlock new consumer markets for
the private sector and empower poor people. 21
Increasingly, companies set high standards on
corporate sustainability and transparency, partly in
response to calls from civil society organizations to
communicate their practices clearly and with greater
regularity. Furthermore, there is a growing commitment
to partnerships, which has led the private sector to work
directly with civil society and governments to tackle
communities’ most pressing challenges. Companies
that have an improved understanding of their impacts
on communities are better positioned to support their
“license to operate” and to accelerate both economic
growth and poverty alleviation where it is most needed.
UN Framework on Business and
Human Rights
In 2008, the United Nations Human Rights Council
unanimously adopted a framework for business and
human rights that recognizes that all corporations have the
“responsibility to respect” human rights. This responsibility
requires that companies do not infringe upon human rights
through either their activities or relationships with other
actors (business partners, suppliers, government bodies).
To meet that obligation, companies must adopt human rights
policies, undertake regular evaluations of human rights
concerns in their operations and along their value chain,
engage with relevant stakeholders, and put in place systems
to avoid negative human rights impacts and to address
grievances from victims. The UN Framework serves as
an umbrella for a range of other normative standards and
voluntary commitments made by companies covering issues
like labor, livelihoods, water, health and sustainability.
The Oxfam America, The Coca-Cola Company
and SABMiller partnership
As businesses gain a deeper insight into the impact of
their operations on poverty and local communities, they
are increasingly collaborating with governments and civil
society to find multistakeholder solutions to common
challenges. All stakeholders are affected by issues such
as nutrition, education, lack of regulation and taxation
and must therefore act together to address them.
In 2008, The Coca-Cola Company, Oxfam America
and SABMiIIer—one of The Coca-Cola Company’s
major bottling partners and an integral part of the
value chain—agreed to study The Coca-Cola/
SABMiller value chain impacts on communities in two
developing country markets: Zambia and El Salvador.
The partnership was aimed at understanding how
communities are impacted by the Coca-Cola/SABMiller
value chain, and to identify the opportunities
for enhancing positive impacts and mitigating
negative impacts.
Oxfam developed the <strong>Poverty</strong> <strong>Footprint</strong> Methodology to
help companies understand their impacts, make greater
contributions to poverty reduction and provide a platform
for dialogue, innovation and accountability. Because
Coca-Cola® is the world’s most valuable brand and
Exploring the links between international business and poverty reduction 23