HomeMy WebLinkAboutMINUTES - 09231986 - X.6 0
TO: 'BOARD OF SUPERVISORS
FROM: Sunne Wright McPeak Contra
Costa
DATE: September 23, 1986 County
SUBJECT: Honor Roll for Responsible Corporate Actions on Apartheid
and Commendation for Coca Cola Company
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Formally commend the Coca Cola Company for their pioneering and
courageous stand to withdraw operations in South Africa as a
statement of opposition to apartheid.
Further, declare the intent of the Board of Supervisors of Contra
Costa County to publicly acknowledge responsible positive steps
by other corporations taking effective action against apartheid
by establishing an honor roll for "responsible corporate action
on apartheid" and reviewing the "honor roll" during monthly
recognition ceremonies.
BACKGROUND:
As the Board of Supervisors considers adoption of a local
ordinance aimed at discouraging business investments in South
Africa, we should also provide a public acknowledgement of
positive actions by corporations to oppose apartheid. The Coca
Cola Company has announced such positive effective action and
therefore should be commended. See attached newspaper clipping
for further information.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON September 23, 1986 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: Supervisor McPeak ATTESTED
County Administrator Phil Batchelor,Clerk of.the Board of
Supervisors and County Administrator
M3e2/7-e3 BY DEPUTY
oke Leaving South Africa,
om Page 33 Donaldson said the company
high as$50 million,while profits has 460 employees in the country.
om the operations to be sold were No arrangements had yet been
gged at about$5 million.Coca-Co- made about their future employ-
declined to comment on the esti- ment,he said.
ates,but said it had about 75 per- "What's interesting is that few
,nt of the South African soft-drink companies have said in such a
iarket. straightforward way that their dis-
investment is because of their oppo-
sition to apartheid," said Timothy
Smith, director of the Interfaith
Council on Corporate Responsibili•
ty. "Most simply cite poor business
conditions or pressures at home to
disinvest. For such a prominent
American company to make such a
statement has tremendoussymbolic
importance and should help turn
the trickle of companies pulling out
into a flood."
New York Times
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San Francisco Chronicle' — September 18, 1986
33
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Coke. to Pull Out.
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New York monitored by other American companies,
Coca-Cola Co. sald yesterday that according to Marcy Murninghan, head of
r r, it will sell its remaining holdings in
the social investment services division of
South Africa within nine months,with the Boston based Mitchell Investment plan
some going to black South Africtin agement Co.,which has advised municipah-
i t investors. ties and companies on disinvestment.
s Q,'
The holdings include a 30 percent share "It's a departure from the status quo in
of At Beverage Industries Ltd., the disinvestment debate that sets a prece•
y f' one of South Africa's largest soft-drink bot- dent for other companies to follow," saki
tiers and distributors, and an 80 percent Murningham, who said disinvestment had
typically involved sales to management or
interest in a canning operation. g
v:hite South African investors with little
"Our decision to complete the process
regard for the social implications.
of disinvestment is a statement of our oppo•
� sitlon to apartheid and of our support for Coca-Cola, once one of the largest
the economic aspirations of black South American employers in South Africa,he.gan
Africans," said Donald Keough, president paring its investment there in 1976 as part
and chief operating officer of the Atlanta-
. �'. based company.
The company said if would continue to "Our decision 1
�{ export the syrup concentrate from which
" Coca-Cola is made to South African bottlersLe a statement o
t� and to doi:ate money to two foundations it
+ R established this spring to support educa- ® r opposition
tion, housing and business development
�® apartheid'
programs for black South Africans.
"Our objective is not solely to disIn-
vest,"
n•vest.r Keough said. "We will disinvest in a
way that creates significant multiracial eq- of a worldwide reorganization of its bottling
rsr.ve CAsrr1(vl(Hf CHFon9CU uity participation in the South African soft- operations. It began reducing its stake.in
rs In the background drinks industry.Our goal is to structure the Amalgamated early last year from 64 per-
transactions in a way that improves the ' cent to the current 30 percent. South Afri-
prospects of black South Africans and in- can Breweries, which purchased a 34 per-
creases their ability to invest in their coun- cent stake for 85 million rand, or about $17
try's economy." million,owns 55 percent of the bottler.The
., The company said it expected to take remaining 15 percent is owned by Cadbury j
between six and nine months to work out Schweppes PLC of Britain.
details of the pullout. Some black South Analysts said that the disinvestment
® Africans have expressed interest in some of would have little financial Impact on the
is (D n the holdings, according to Randall Donald company. South Africa is estimated to ac-
O� son, a company spokesman. But he refused count for between 2 percent and 3 percent
to identify them or discuss the size of invest of Coca Cola's sales, which totaled $7.9 bil
ments that Coca-Cola believes could end up lion last yeaI
in their control.The company might have to r.
acquire interests in some bottling fran- Coca-Cola had operating profits last
foal fund run by David chlses from white owners to provide black year of $1.05 billion. Analysts' estimates of
>rk institutional money investors with significant opportunities, the portion derived from the sale of syrup
< fund will start with a Donaldson said. concentrates-to South African bottlers run
tares and be traded like
New York Stock Ex- Coca-Cola's plan is likely to be closely Pape 38 Col. 1
+'ill carry a commission
' nt instead of the usual 6
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