Coca Cola 2013 Annual Report Download - page 20

If negative publicity, even if unwarranted, related to product safety or quality, human and workplace rights, obesity or other issues
damages our brand image and corporate reputation, our business may suffer.
Our success depends in large part on our ability to maintain the brand image of our existing products, build up brand image for
new products and brand extensions and maintain our corporate reputation. We cannot assure you, however, that our continuing
investment in advertising and marketing and our strong commitment to product safety and quality will have the desired impact on
our products’ brand image and on consumer preferences. Product safety or quality issues, actual or perceived, or allegations of
product contamination, even when false or unfounded, could tarnish the image of the affected brands and may cause consumers
to choose other products. In some emerging markets, the production and sale of counterfeit or ‘‘spurious’’ products, which we and
our bottling partners may not be able to fully combat, may damage the image and reputation of our products. In addition, from
time to time, we and our executives engage in public policy endeavors that are either directly related to our products and
packaging or to our business operations and general economic climate affecting the Company. These engagements in public policy
debates can occasionally be the subject of backlash from advocacy groups that have a differing point of view and could result in
adverse media and consumer reaction, including product boycotts. In addition, campaigns by activists attempting to connect us or
our bottling system with human and workplace rights issues in certain emerging markets could adversely impact our corporate
image and reputation. For example, in June 2011, the United Nations Human Rights Council endorsed the Guiding Principles on
Business and Human Rights, which outlines how businesses should implement the corporate responsibility to respect human rights
principles included in the United Nations ‘‘Protect, Respect and Remedy’’ framework on human rights. Through our Human
Rights Statement and Workplace Rights Policy and Supplier Guiding Principles, and our participation in the United Nations
Global Compact and its LEAD program, as well as our active participation in the Global Business Initiative on Human Rights
and the Global Business Coalition Against Human Trafficking, we made a number of commitments to respect all human rights.
Allegations that we are not respecting any of the 30 human rights found in the United Nations Universal Declaration of Human
Rights, even if untrue, could have a significant impact on our corporate reputation and long-term financial results. Also, adverse
publicity surrounding obesity and health concerns related to our products, water usage, environmental impact, labor relations or
the like could negatively affect our Company’s overall reputation and our products’ acceptance by consumers.
Changes in, or failure to comply with, the laws and regulations applicable to our products or our business operations could increase
our costs or reduce our net operating revenues.
Our Company’s business is subject to various laws and regulations in the numerous countries throughout the world in which we do
business, including laws and regulations relating to competition, product safety, advertising and labeling, container deposits,
recycling or stewardship, the protection of the environment, and employment and labor practices. In the United States, the
production, distribution and sale of many of our products are subject to, among others, the Federal Food, Drug, and Cosmetic
Act, the Federal Trade Commission Act, the Lanham Act, state consumer protection laws, the Occupational Safety and Health
Act, and various environmental statutes, as well as various state and local statutes and regulations. Outside the United States, the
production, distribution, sale, advertising and labeling of many of our products are also subject to various laws and regulations.
Changes in applicable laws or regulations or evolving interpretations thereof, including increased government regulations to limit
carbon dioxide and other greenhouse gas emissions as a result of concern over climate change, or regulations to limit or eliminate
the use of bisphenol A, or BPA (an odorless, tasteless food-grade chemical commonly used in the food and beverage industries as
a component in the coating of the interior of cans), may result in increased compliance costs, capital expenditures and other
financial obligations for us and our bottling partners, which could affect our profitability, or may impede the production or
distribution of our products, which could affect our net operating revenues. In addition, failure to comply with environmental,
health or safety requirements, U.S. trade sanctions, the U.S. Foreign Corrupt Practices Act and other applicable laws or
regulations could result in the assessment of damages, the imposition of penalties, suspension of production, changes to equipment
or processes, or a cessation of operations at our or our bottling partners’ facilities, as well as damage to our and the Coca-Cola
system’s image and reputation, all of which could harm our and the Coca-Cola system’s profitability.
Changes in accounting standards could affect our reported financial results.
New accounting standards or pronouncements that may become applicable to our Company from time to time, or changes in the
interpretation of existing standards and pronouncements, could have a significant effect on our reported results for the affected
periods.
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