Identifier
Created
Classification
Origin
04ACCRA1528
2004-07-22 16:16:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Accra
Cable title:  

DUE DILIGENCE ON COCA COLA-GHANA FOR THE SECRETARY

Tags:  BEXP ETRD GH 
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UNCLAS ACCRA 001528 

SIPDIS

SENSITIVE

STATE FOR EB -- NANCY SMITH-NISSLEY

E.O. 12958: N/A
TAGS: BEXP ETRD GH
SUBJECT: DUE DILIGENCE ON COCA COLA-GHANA FOR THE SECRETARY
OF STATE'S 2004 AWARD FOR CORPORATE EXCELLENCE

REF: STATE 155706

UNCLAS ACCRA 001528

SIPDIS

SENSITIVE

STATE FOR EB -- NANCY SMITH-NISSLEY

E.O. 12958: N/A
TAGS: BEXP ETRD GH
SUBJECT: DUE DILIGENCE ON COCA COLA-GHANA FOR THE SECRETARY
OF STATE'S 2004 AWARD FOR CORPORATE EXCELLENCE

REF: STATE 155706


1. (SBU) In response to reftel request, Post has conducted
due diligence on the Coca Cola operations in Ghana in order
to reaffirm the company's exemplary conduct. Econoffs
discussed reftel questions with government officials, Union
representatives, AmCham leadership, and also, in a
non-specific way, with officials from the Coca Cola Bottling
Company of Ghana Limited.


2. (SBU) Based on our conversations with various parties,
Coca Cola's excellent reputation in Ghana is deserved and the
company is maintaining the highest business standards. We
are not aware of any potential "downside or embarrassment"
that could be caused by selecting Coca Cola-Ghana for the
Secretary's 2004 Award for Corporate Excellence. The company

SIPDIS
currently maintains excellent labor relations and is
unionized, and company management does not foresee labor
disturbances. The Company's direct beneficial impact on the
U.S. economy and employment is limited, but there is some
indirect positive impact.


3. (SBU) Post provides the following detailed responses to
reftel questions A - D:

A) As outlined above in Para 2, Post is unaware of any
adverse reports on Coca Cola-Ghana that would cause
embarrassment to the USG were it to select the company for
the Corporate Excellence program. Government and Union
officials praised the company, as did the President of the
American Chamber of Commerce.

B and C) Coca Cola-Ghana is a bottling franchise, and serves
the Ghanaian market and some of the neighboring countries.
So, its impact on the U.S. economy and employment is
indirect. The parent company, Coca Cola Company
headquartered in Atlanta, is a minority shareholder in the
Coca Cola Bottling Company of Ghana Limited. The majority
shareholder it the Equatorial Coca Cola Bottling Company,
based in Spain. Coca Cola-Atlanta is also a minority
shareholder in the Spanish company. Coca Cola-Ghana buys
inputs from the Spanish Coca Cola subsidiary, and Segun
Ogunsanya, GM of Coca Cola-Ghana, thinks it is possible that
some of these inputs originate in the U.S. The U.S. parent
company also provides most training and all marketing
materials for the Ghana Company. It is Post's understanding
that U.S. expatriate workers are not employed at the Ghana
Company, but sometimes visit to provide technical assistance.

D) Coca Cola-Ghana workers are unionized and two associations
represent management (one for junior and mid-level and one
for senior-level). GM Ogunsanya does not foresee labor
problems in the near future. The company is known to spend a
lot of time on worker training and has good salaries and
benefits relative to the market. It also was one of the
earliest companies to begin HIV/AIDs awareness training,
voluntary testing, and provision of appropriate health care.
Mr. Divine Atta Bosompem, the Deputy Chief Labor Officer at
the Ministry of Manpower, described Coca Cola-Ghana as a very
credible company and one of the best companies in Ghana in
terms of labor practice. The Ministry does not have any
pending labor disputes involving Coca Cola. Mr. Gilbert
Awinongya, Deputy Secretary General of the Operations,
Industrial and Commercial Workers' Union also confirmed that
Coca Cola staff are unionized, and described it as a "good
employer."


4. (U) In sum, Post believes Coca Cola's operations in Ghana
are reflective of the exemplary qualities looked for under
the Department of State's Corporate Excellence program.

YATES