Coca Cola 2015 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 and human rights 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 the
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. Similarly, our sponsorship
relationships could subject us to negative publicity as a result of actual or alleged misconduct by individuals or entities associated with organizations we
sponsor or support financially or through in-kind contributions. Likewise, campaigns by activists connecting us, or our bottling system or supply chain, with
human and workplace rights issues could adversely impact our corporate image and reputation. Furthermore, 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
Policy, Code of Business Conduct and Supplier Guiding Principles, and our participation in the United Nations Global Compact, 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, even if untrue, that we are not respecting one or more of the 30 human rights found in the United
Nations Universal Declaration of Human Rights; actual or perceived failure by our suppliers or other business partners to comply with applicable labor and
workplace rights laws, including child labor laws, or their actual or perceived abuse or misuse of migrant workers; and 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 brand image, which in turn could have a negative impact on 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 and product stewardship, the protection of the
environment, and employment and labor practices. In the United States, the production, distribution, marketing 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 and sale 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 can liners and other packaging materials), or regulations to limit or impose additional costs on
commercial water use due to local water scarcity concerns, 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, distribution, marketing and sale 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 or distribution, costly changes to equipment or processes due to required corrective action, or a cessation or interruption 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.
18