Supplier Guiding Principles

February 23, 2006 Stuart Kyle Director, Workplace Accountability The Coca-Cola Company

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The Coca-Cola Company We aspire to be the most respected company in the world by:

REFRESHING THE WORLD - EVERY DAY, ALL DAY. We are invited into peoples daily lives. We are trusted to refresh their body, mind and spirit.

BEING A TRULY GLOBAL COMPANY. We are local and we are global, which makes us truly global and allows us to build unique relationships between people.

LEADING WITH HUMBLE CONFIDENCE. We are resolved to make a difference in the world for our consumers, customers, bottling partners and the communities we serve.

We have a clear and inspiring vision for the future:

OUR VISION FOR SUSTAINABLE GROWTH PROFIT Maximizing return to shareholders while being mindful of our overall responsibilities. PEOPLE PORTFOLIO PARTNERS PLANET Being a great place to work where people are inspired to be the best they can be. Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples desires and needs. Nurturing a winning network of partners and building mutual loyalty. Being a responsible global citizen that makes a difference. February 24, 2006

OUR CITIZENSHIP FRAMEWORK FOR HOW WE CONDUCT OUR BUSINESS

MARKETPLACE
Our commitment is to provide products and services that meet the beverage needs of our consumers. In doing this we provide sound and rewarding business opportunities for customers, suppliers, distributors and local communities

WORKPLACE
Our commitment is to foster an open and inclusive environment based on recognized workplace human rights, where a highly motivated, productive and committed workforce drives business success through superior execution.

ENVIRONMENT
Our commitment is to conduct our business in ways that protect and preserve the environment and to integrate principles of environmental stewardship and sustainable development into our business decisions and processes.

COMMUNITY
Our commitment is to invest time, expertise and resources to provide economic opportunity, improve the quality of life and foster goodwill in communities through locally relevant initiatives.

February 24, 2006

Supplier Quality Management

Define Requirements - Brochure
Quality Systems Quality Programs Supplier Guiding Principles Purchased Materials - Services Process Monitoring and Control Finished Product Management Food Safety (HACCP) Chemical Residue and Contamination Control Traceability Scientific & Regulatory Affairs Notification of Regulatory Actions Notification of Process Change Auditor Access Security Confidentiality Code of Business Conduct

Clearly communicate Company Requirements Consolidates into one reference Ensures consistency
February 24, 2006

Workplace Accountability at The Coca-Cola Company

Some key statistics
The Coca-Cola system: sells over 1 billion servings of our beverages daily in over 200 countries. produces in over 860 facilities located in over 150 countries. employs more than 300,000 people. is targeting assessments at over 10,000 supplier facilities globally.

February 24, 2006

Workplace Accountability at The Coca-Cola Company

A minimum requirement that all direct suppliers to the Company, suppliers authorized by the Company, and operations producing Company products comply with local law. A particular focus is placed on child labor forced and prison labor abuse of labor freedom of association and collective bargaining wages and benefits working hours and overtime environment, health and safety

February 24, 2006

Workplace Accountability at The Coca-Cola Company

Why have Workplace Accountability A part of our business model:
Be a responsible global citizen that makes a difference Be a great place to work where people are inspired to be the best they can be.

Enhances our business and demonstrates that we listen:

Employees Shareholders Customers External stakeholders Consumers

Announced January 29, 2002

February 24, 2006

Workplace Accountability at The Coca-Cola Company

What Implementation Looks Like Our supply chain will at a minimum, be in compliance with local laws respect basic human rights and Freedom of Association be able to demonstrate that Key Actions
Communicate every facility is aware of the requirement. Contract all suppliers have appropriate contracts in place. Audit verify facilities are in compliance. Correct all necessary corrective actions are taken. Measure, Inform, Report progress through metrics / information.

February 24, 2006

Workplace Accountability at The Coca-Cola Company

Roles who is responsible
The person that authorizes / selects the supplier is responsible for it. Division Presidents are accountable for performance within their Divisions. Oversight and governance provided by Corporate.

clear roles aligned to existing work.

February 24, 2006

Workplace Accountability at The Coca-Cola Company

We have learned a lot Take a risk based approach:
developing Asia, promotional materials.

The risk are real: Many suppliers have significant gaps on first assessment Our approach appears effective:
first re-assessment shows an average 60% reduction in findings.

Continuous improvement:
de-authorization rates are low. Able to drive improvement.

Engage and address stakeholders and their concerns:

be transparent; look for the grain of truth.

February 24, 2006