Poverty Footprint Study on how the Coca Cola - Oxfam America

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10 Value chain: Security and stability Headlines Sugarcane harvesters face potential risks to their health and safety. Endemic crime in El Salvador affects people throughout the value chain. Independent truck drivers in Zambia face potential safety risks posed by working extended hours on hazardous roads. 58 Exploring the links between international business and poverty reduction A lack of security can severely hamper development. Protection from a variety of insecurities—economic, medical, nutritional or environmental—is essential to the well-being of people living in poverty. Secure people enjoy freedom of movement, freedom of speech and access to essential resources to help them endure unexpected threats to their livelihoods, which can include serious illness, unemployment and natural disasters. Secure workers can practice their livelihoods in safety, free from hazardous occupational risks, poor working conditions and crime. Dangers of sugarcane harvesting Harvesting sugarcane is a rigorous physical activity requiring the use of a machete to cut large stalks of cane. Ninety percent or 18 out of the 20 sugarcane workers we interviewed in El Salvador, reported facing occupational safety risks, including injuries, burns and poisoning on a regular basis. Five, or a quarter, have suffered work-related accidents and frequently do not have adequate safety gear, leaving them vulnerable to hazards. Despite these risks, when asked about what would improve their working conditions most, 12 or 60 percent indicated better salaries while only four, or 20 percent, indicated better access to medical services and basic benefits.
Crime in El Salvador El Salvador faces particularly high levels of violent and petty crime when compared with most developing countries. Extortion is common, and organized gangs, or maras, intimidate and victimize people routinely. In the Coca-Cola/SABMiller value chain, sugarcane producers, suppliers and distributors (especially owner-drivers) reported concerns about gang activity such as muggings, extortion and vandalism. The town of Nejapa, where ILC is based, is a known gang stronghold with a high crime rate. ILC has created a 24-hour security and monitoring program to protect its plant workforce, but some employees still report feeling vulnerable when traveling to and from their homes. ILC has also created a job-training program for former gang members, partly as a result of its ongoing community dialogue. Community leaders pointed out that young men in the area often lack job opportunities and therefore turn to gangs. Recommendations for follow-up action Owners of distribution businesses commented that the crime makes them afraid to invest in improving or expanding their businesses. Over half (four out of seven) of those interviewed reported having serious security problems, and one third reported making extortion payments, or “rent,” to gangs. Forty percent (34 out of 85) of retailers interviewed also reported that security problems negatively impacted their business. Dangerous road conditions in Zambia Independent drivers transporting Coca-Cola products by truck are facing increased incentives to work longer hours as a result of the rapid growth of the business. This dynamic, coupled with hazardous road conditions, places the truck drivers at considerable safety risk. Engage sugar farmers and producers to improve safety and health of sugarcane harvesters. Investigate why independent truck drivers in Zambia work more than eight hours per day and discuss with drivers potential mechanisms to ensure safe driving. Exploring the links between international business and poverty reduction 59
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Exploring the links between interna
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Contents About the organizations 4
Page 5 and 6:
The Coca-Cola Company sustainabilit
Page 7 and 8: Exploring the links between interna
Page 9 and 10: Muhtar Kent Chairman and Chief Exec
Page 11 and 12: Graham Mackay Chief Executive SABMi
Page 13 and 14: ase of the pyramid, achieve a devel
Page 15 and 16: Recommendations for follow-up actio
Page 17 and 18: with the community includes not onl
Page 21 and 22: The role of business in development
Page 23 and 24: It is projects such as this that co
Page 25 and 26: Zambia El Salvador Our approach Oxf
Page 29 and 30: Six percent of the population lives
Page 31 and 32: SABMiller’s role as bottler In Za
Page 33 and 34: Zambia El Salvador Figure 4: The Co
Page 35 and 36: The Coca-Cola/SABMiller value chain
Page 37 and 38: Zambia El Salvador In the absence o
Page 39 and 40: Table 8: Aggregate employment impac
Page 43 and 44: In all markets, with few exceptions
Page 45 and 46: Figure 9: Auditing in The Coca-Cola
Page 47 and 48: employment include some workers in
Page 49 and 50: El Salvador The highest wages in th
Page 51 and 52: Many people are hired during the su
Page 53 and 54: Investment in training and capacity
Page 55 and 56: The union is an excellent organizat
Page 57: Recommendations for follow-up actio
Page 61 and 62: 0 [When] we get out at night, we ar
Page 63 and 64: Mill work is also physically strenu
Page 65 and 66: 0 Table 10: Sales by packaging type
Page 67 and 68: Table 12 Water use ratios at SABMil
Page 69 and 70: The Coca-Cola Company Sustainable P
Page 71 and 72: Product portfolio The Coca-Cola pro
Page 73 and 74: Recommendations for follow-up actio
Page 75 and 76: 0 Civil society groups encourage co
Page 77 and 78: According to The Coca-Cola Company
Page 79 and 80: Engage with NGOs and financial grou
Page 83 and 84: We also wish to thank the many stak
Page 85 and 86: 43. This was developed by the Unive
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