Let's give a warm Georgia Tech
welcome to Mr Neville is now.

Thanks.

Thanks thanks everyone thank you for
being here today.

And you know coming here I thought but
about you and

I look ere we will all have
taken up your time to come here.

What I want to hear what you
think you were going to hear.

And how in a way can I make it and

subway a different and interesting.

Could give you the secret formula.

But I don't even know it either and

it's just look down the road is
you know in the vault there.

I could bore you with going through all
of the elements of the of the turn Iran

but then a lot of that's in the book and
you wouldn't buy the book so.

I'm going to do that either.

But what I thought I'd do first is one
of the things I say that you don't do

in speeches and you don't do when you're
doing you know writing anything is you

don't mix up two different
stories lives at the same time.

But I'm actually going to do that and
it was in the introduction in terms of

talking about you know social
responsibility and accountability for

a corporation so I'm going to mix the two
up and in fact I did that within the book.

Just about the book for

a second I mean first of all you
know why do you write a book.

What I guess should be an autobiography.

I guess first of all does he go you go to
be honest you want to write a book I mean

it's quite neat you know.

See or see your book there
on that on a bookshelf.

But the genesis of my book was really
that I I believe in telling stories and

I tell stories and you know run
dinner parties and all this and it's.

People said you got it you got to write
this up you just could write a book

which is what I did and
it's there more for

I guess my family and
posterity there than for anything else.

But you know it's been successful
in that that feels pretty good too.

But what I wanted to capture
within that was something that.

I hope interest all of you and
that is that.

There is so much opportunity out
there in the world if you grab it and

I was one of the lucky people very
lucky people who managed to get

that level of exposure
that level of experience.

I have lived literally in eleven countries
and five different continents over what

over my whole life most of it in the forty
three years of the Coca-Cola company.

I never said.

To be a lifer.

I always thought that I'd move on from
company to company as just about everyone

else dolls and certainly more so
today but it just worked out.

And that gave me a cross cultural
view of the world and of life.

Which was something else that I
wanted to reflect upon as well and

I'm going to leave most of that open
to the Q. and A as I find that's

much more destructive than trying
to link true with regard to that.

But.

I wish quite honestly.

That I were twenty five years old today.

Or younger actually.

Because I am very optimistic about.

Today's tomorrow's world
even about today's world.

And I see the new
technologies coming along.

Which are going to.

To enable a speed of change.

Which is going to
radically better the world

in the aggregate because it
won't only better the world.

And you can be part of that and I envy
that I really envy that because I I I

would obviously inevitably be part of it.

But what has to stay in me and
I guess advice my career.

Is something.

Very simple that it would impart to
you and that is an inquiring mind.

Always looking to find out more.

One of the things that if you go
through my my C.V. in retirement now.

I am co-chair of the call
the investment club facility for

Africa which is about reforming governance
in Africa to a business to develop

I also next month take over as chairman
of the U.S. World Wildlife Fund so

I'm now in the NGO world and very
worried about species and humanity and

the environment and I'm going to take
that over so I'm actually not retired

I just don't get paid for
most of the things I do today.

And that continuing exploration.

Is something I always want to talk
about when I talk to a group like you.

Your education is not about.

The completion of the diploma and
I managed to get out of Georgia Tech with

you know call out able whatever it
is that it prepares your mind and

it prepares you to go into
total voyage of exploration.

And that in a way is what my book is and
was about.

Not explicitly but implicitly in terms
of this is the way it played out for

me.

But let me just I.

I talked about optimism about the.

World at large.

But there's lot reason lot of reason for
pessimism as well.

The Economist this week quoted some
numbers from the research done by

the research institute of
the German Marshall Plan.

And if you don't know what the Marshall
Plan was I suggest you look it up

because it was one of
the great bequests of the U.S.

government in terms of bringing Europe out
of the Second World War It was a amazing

magnanimous gesture on behalf of the US.

But their research arm.

Said that in Europe seventy
six percent of people

do not believe that capitalism is
more than for just a few people.

In other words that it is skewed
to a very significant minority and

it does not benefit them.

That number in the US You might think
is different it is it is lower but

today it is sixty four percent.

Six years ago it was forty three percent.

To something very threatening happening.

The capitalist system which has been the
most successful system with all its flaws.

Were taking people out of poverty.

And developing the world at large for
the better.

Is at risk in my view.

Now that seventy four percent and
that sixty four percent.

Don't have an alternative
philosophy by and

large they don't have anything
to replace it with but

there are happy the spoils are not
being spread in the right way.

And that is.

Very fertile soil very
febrile very fertile soil.

For political movements that will
undermine what generates growth.

And I know people are going
to say well yeah but

things haven't worked out very well in the
last few years well I just want to take

you with some other data that
was published in The Economist.

So we read about food
pride in Greece is right.

We read about for a short ages.

That has to tell you that

the level of absolute poverty
in the level of starvation.

Has increased markedly.

While the World Bank's
numbers actually refute that.

And they refute the numbers
on poverty were

numbers that were put up with the Food and
Agriculture Organization.

Who actually had a number that
that you know soaring of poverty

between two thousand and five and two
thousand and ten that has been debunked so

that would be the one that
some people have read but

the truth of the matter is this and
I want to just read from this.

New estimate show that in two thousand and
eight the first year of the finance food

crisis both the number and the share of
the population living on less than one

dollar twenty five a day which is
the dividing line for absolute poverty.

And it's done a constant crisis was
fully in every part of the world

this was the first instance of declines
across the board since the bag

started collecting figures in
one thousand nine hundred one.

The estimates now for that was for
twenty ten or partial but.

What the Millennium Development Goals were
reached in terms of having poverty world

poverty between one thousand nine hundred
twenty fifteen by two thousand and ten.

In other words five years early.

And it continues.

At unabated with a little bit of progress.

Africa.

Hype was brought up there and
I still spend a lot of time there.

Which get such brat
press on deservedly so.

Has seen the largest recent
turnaround the only continent

where in fact the head rose.

At a double digit right in other
words declined a double digit rate.

The number of people moving
out of poverty almost doubled

from one nine hundred eighty
one to two thousand and five.

So.

Those are the if you
read the popular press.

Those are not the numbers that you read it
is about the fact that these crises and

they are crises.

Are creating more poverty.

If you go to Africa today you're going to
see a vibrant market economy in action.

You will see.

All to put hers.

And all to put those maybe just single
people selling vegetables in the market

but also.

About aging to become wholesalers and
and mete factoring Goodson

even if we're just selling cars for
a cellphone but there's a bustle and

entrepreneurial ship that's why
sub-Saharan Africa G.D.P.'s are growing at

an excess of seven percent and
will in my view continue to do so.

So what I'm trying to connect
here is this disaffection.

Which in many respects is
a Whiston us disaffection for

the spoils of capitalism and
a query about capitalism

that can potentially
undermine the very system

that has benefited each and
every one of us in this room.

And maybe you don't identify with that but
it it has it did and it will and

we need to defend it.

Now.

To be better players.

Friend of mine who.

Is a builder.

Now status in society doesn't
put builders right at the top

you know it's plumbers and
builders and what have you tend to.

Not be seen around a dinner table you know
if you're sitting if you're sitting at

dinner table with people five
six seven eight years ago.

That said what do you do if I was have
a builder and it was really that that's

that's very interesting and someone else
for the Dhamma site I'm a bankruptcy so

your bank was a bit different
today they say well I'm a I'm

a banker there which is
you're a banker you know.

But the finance industry
has clearly that has done.

Has clearly become in some
instances casino like.

And to me when people are talking
about investment as bets like a casino

that tells you there's something
wrong with that system.

And equally underneath all
of this there's a change

there's a societal change
that we detected that.

And you're very much a part
of that it is a far greater.

Demand for values.

For looking at people for
looking at is the church and

looking at businesses and
looking behind them.

And say what do you stand for
what who are you what are you and

what do you believe in it does that match
the values that I have and that I hold.

And.

One of the one of the things.

We that we realized was that
we were not catching up

we were not ahead of that movement.

We weren't thinking about how people
perceive the broader company enough and

what we did.

We were not thinking about how we
move things forward in terms of

connecting at that level not just with
individual consumers to sell Coca-Cola but

with society as a whole.

We didn't think about how important
it was to have a social license.

That social license has
been fundamental to

the agreement to the pact between
the rent seekers between the business.

And society is as a whole.

And will continue to be so and
I think the instances that I've quoted and

there are others of dysfunction.

Are the ones that say so
the seeds of the destruction potential.

So we have to think anew
businesses have to think anew.

N.G.O.s have to think anew governments
have to think anew not only

about how they connect to society but
also how they connect together.

So the first piece of that puzzle is what
I call a triangle of sustainability.

And I believe that if governments.

Civil society and that's academia and
N.G.O.s it's a broad it's a broad swathe.

And business and
I would include bankers in that as well.

Actually start looking at key
areas where they have an impact

and work together with
regard to solutions so

what I mean by that.

It means that.

As a business you have to agree
with disagree with Milton Friedman.

That's very difficult He's
a giant of economics.

And although he's somewhat misquoted he
did talk about the law of the commons but

anyway he's somewhat misquoted he
is the one who said that the only

true purpose of a business is to
make a profit for the shareholders.

He sometimes had a caveat.

That to me has though has been
misconstrued as make a share a profit for

the shareholders this
quarter next quarter.

Within the timeframe of Wall Street.

But not within that what should be
seen as the time frame of a business.

The Coca-Cola Company is one
hundred twenty six years old now.

You go to think about
the next twenty five years

you've got to think about
how you position yourself.

And you've got to think about
things in a very different way.

You to think about where you
have a negative footprint.

Where your extractive.

We were extractive without
putting enough back.

Your extractive actually by
causing a degree of damage.

Water.

Would be the one that.

Coca-Cola is pilloried for
taking it taking out and selling.

It to clean a plastic bottle.

And it is.

Also.

The one key ingredient that is cause
more wars a thing else in history.

But if you take the narrow
Friedman view of things

that get out the the what is there.

They price it to you you buy put
a premium on it make a profit for

Wall Street make a profit for
your shareholders that's fine.

It's not find any more.

Consumers say no no no we want to
know what you're doing about water.

And.

As you get that in you become engaged
in this whole large water debate and

I'm not going to go into the politics
of water time for that but

it is a very complex situation and
as you get into more and

more you get pushback from Wall Street.

And I.

At a particular analyst
meeting got the pushback.

And Bissett to me what the person
the audience said Well how do you justify

spending shareholders' money on all of
these water projects that you're doing

what what's the yield for
the Coca-Cola company.

And my answer was very simple I actually
was with the coked out of the sunny but

I sort of took it out slowly.

Took a sip of them said.

Tell me why do you think I shouldn't be
worried about one of my key ingredients.

And I never had that question again.

But when you start thinking
of it in those terms

you adopt as it were the Friedman view.

Because in fact that robot Tiriel
that precious thing cool water is and

is integral to your long term
sustainability and success so

it has I call it strategic coherence.

It is strategically vital and
therefore spending shareholders' funds for

the long term benefit of the company and
also for society.

Is absolutely vital to
the survival of the company.

And what is.
Does is it not only improves

the connection with consumers
it not only improves.

Connection in terms of how people
rate the company into it but

engagement society in values.

It does one other very
very powerful thing.

And.

We had the data we got the data
I don't know the updated but

I'm sure it hasn't changed.

Data up.

What you call a gauge went how
the people feel when they walk in

on Monday morning through the doors down
in North Avenue or in Johannesburg or

in Sydney or in Dhaka or how they
feel about the company they work for.

And the data that we
had in two thousand and

four it was I mean it
was part of the intro.

Actually pretty dire.

And.

What.

Happens is that people switch off they
turn the switch they do what they have to

do I mean this interesting things
about Coca-Cola marketing that

there's no I shall enjoy it but
if you don't feel inherently good.

About the company you work for
you're not going to deliver

the very very best work
in the very best effort.

And the numbers.

And part it's not just what I've been
talking about the last fifteen minutes but

it's a key part of it.

This base research that people
say I now feel much product or

actually very pride working for
the Coca-Cola company because.

Of what the company does with regard
to water the leadership position

that the company takes.

And let me describe that
leadership position.

It is by the end of twenty fifteen to be.

All of the water that is used
in the manufacturing process

in a thousand factories around
the world will be returned to nature

one hundred percent in
nature identical form.

Can Support aquatic life.

That's a massive investment in water
treatment but it means that the old era

of saying well we take the water we use
it we throw it out of the river because.

That water's pristine usable drinkable.

But more than that say by twenty twenty by
the sort of projects that took on to take

validated by people like
the World Wildlife Fund my new site.

That.

By twenty twenty that be totally
water neutral in other words by

a media rating deforestation and paying
for that there is a formula would says so

much water has been
kept in a pure form and

therefore that is like a carbon
offset it's a water offset and

by doing by doing that cook by twenty
twenty will actually have zero

imprint on the planet with
regard to its manufacturing.

Of the product and
the product that is consumed.

And then you go a step further you
say what about my supply chain.

If you take it for
Coca-Cola What about the sugar that we buy

sugars extremely thirsty crop.

And therefore one of the other things that

I undertook in partnership was with
Cogdell we made investments in R.

and D. and today Coca-Cola not in large
quantities but because it's expensive but

would get the cost on is buying a new
strain of sugar cane which need.

Thirty percent less water to
grow than normal sugarcane.

So there's your connectivity.

Here's where you have an imprint
do you look after what you do

in your own shop as it were
in your own factories and

then you look at that broader
broader swathe of players.

So I don't know what you expected when
you came in if you expected this sort of

lecture rather seriously.

But.

This to me is how businesses
have to evolve and

they're only going to do it by
working closely with N.G.O.s.

And one of the one of the reasons I'm with
the World Wildlife Fund is I believe that.

There is a absolute need for
business to sustain Geos like W.W.

it to be able to have
a positive impact and

I can take questions on that later on but.

The NGOs realise they don't have
the implementing capacity they don't have

the arms and the legs they don't have
eight hundred fifty thousand people

working around the world cook COLA
does Unilever does Wal-Mart does and.

The head of W. Don't you have to
spend three days in Bentonville with

with Wal-Mart a joint programs.

To look at the footprint at
Wal-Mart has and to reduce that and

the benefit to the society overall So
those are my Those are my formal remarks.

No commercial sorry.

No way to tell human no formula but I want
you just you know if you go away from here

I'd like you to think about how you
become engaged in a hunting those values

how you protect those values because
I think in this we do that the.

But are going to query the.

The rightfully tough capitalist
system to a degree that we could have

some sort of political dysfunction that
undermines its ability to take more and

more people out of
poverty to make more and

more people part of a functioning middle
class to give more people the opportunity

to come to Georgia Tech
thank you very much.

Thank you so
that a couple of bikes I think Iran.

Anything you know you can go back to
Coca-Cola now you can talk open Osco

questions if you want to which the only
caveat that I'll make is that I don't work

for the Coca-Cola cup anymore I retired
three and a half years ago so current

questions I don't know about in management
I'm not on the board I do other things so

I will I'm not going to talk
currently about Coca-Cola and

I shouldn't and I want OK so
that I'll duck those all

right.

Just give me your name and

that what you're studying
beautiful money means to me my.

Business Administration
major My question and

if you're not allowed to answer
this it's OK Do you think it's art

if you're not allowed to answer
this it's OK you got shirts.

Do you get Coke products for
the rest of your life for free.

The answer is absolutely yes and

I buy them a Kroger.

A has gone on Fox fifty year
industrial engineering major

My question is when you did work for
Coca-Cola What are some of the biggest

ways you saw the company
involved over the years.

Well I think it was a global.

Zation of the company.

You know what you know I joined
the company in Zambia and

I remember I was I was there for
those in the Africa group.

And I was told people would say if
you had to go to me at the time

because you about originally Irish you
want to hear the action anymore but.

Brought up in Africa.

You know there's a there's
a ceiling it's the American ceiling

all the top jobs are held by Americans.

That was the conventional wisdom.

And I did worry me that much because
I wasn't anywhere near that level.

But there was there was definitely
get there would defeat a ceiling.

And if you know if you go back to
the last five six chairman and C.E.O.

as one was an American what was
a Cuban what was a stray and

I was Irish and
current one is Turkish American.

And if you look at the management
team down at North Avenue today

the guys running guy runs Asia's
a Colombian the one who runs

a Latin America Mexican Europe is
that the just been a change but

actually he's British but before that
up until a week ago we could still go

Frenchwoman the chief legal consul
used to be a stray a nice German.

Chief Legal Counsel of a U.S.
corporation OK.

They had a technical Dutch belt
Belgium Dutch auction Dutch Belgian.

And you know it so it goes on as you if
you go through it and what has happened

is that as the company has spread out
to become truly global in terms of

where it were you know eighty percent of
the earnings come from outside the U.S..

Has just become really global in terms
of its reach into those of its business.

It's become so as part of its management.

And I would say it is not there yet
as a truly global company but

there is I would challenge anyone to say
there's any company looks more global.

And global you know you look at
the management team so we're truly global

where one hundred fifteen countries but if
you're not global in terms of the mix of

the people that you have running
the company you're not you're not treating

global So when you set broader a major
meeting it's the United Nations.

You've got on you've got the voices
from from everywhere and

that that's really changed and I.

You know sometimes going and talking to
other companies I'm struck by the fact

that although they have a knowledge of
the rest of the world the cultural.

And tend.

Are not as strong as the cultural antenna
that I think the president the Coca-Cola

company.

But I'm sure.

I am going to hear my name's Ross Milburgh
and I'm a is the ministration maging And

my question is you can talk McLuhan this
also pertains to that when I think of coke

on me this raise your voice a little
when I think of the company I think of

the company that represents globalization
and my question to you is what you think

is the single greatest challenge to
running a worldwide corporation.

Well the significant challenge is
always getting really talented people.

It really is.

And that's what it should be about
because at the end of the day.

You are about that the type of people that
you employ and also how you train and

manage them.

That to be as it is
always always know what.

The second is I think.

The the challenge today which I have to.

Talked about.

And that is how we interact with society
and how we're perceived by society.

And.

That that to me that whole
value based judgment area and

what you stand for is the second one and
I know that which our Spins.

What somebody said
disproportioned out of time and

in that area because he understands that's
that's part of it and and it's also

understanding what the what the cards are
and what the under the undercurrents are.

And just it's not it's
wasn't in your question but.

You know globalization in a way is
go to a little bit of a bad name

and it's it's reflective
in those numbers that I

quoted earlier that's all part of that
equation that fear is fear of loss of jobs

it's fear of China
the loss of jobs to China.

And it's as always I mean free trade
has always been theatre because

free trade is seen as you know what job
going there and going away somewhere else.

And it's very difficult to sit and argue
with the Lou Dobbs who will give you a.

An example of factories closing down and
go to China and say whether you

are free trade doesn't work and
then you're there saying Well look I'd

like to actually explain to you the laws
of comparative advantage in economics.

At doesn't get through to the average
guy doesn't doesn't work but the the.

Economics of free trade are still the same
it's still all part of that whole system

and I think business has a role in.

Being able to try to
proselytize that as well but

that's not the biggest challenge of it so
I also wanted to comment on.

My name's Nicole Reardon and
that fourth year management student.

Originally from strength
which makes neighbors.

My question is last week our speaker
talked a lot about taking risk

and I was wondering why you what advice
you would have to give us about really

the relationship between risk and
reward and when to take risks.

The first thing I do is say he's right.

I agree with him.

And I'll give you a personal story.

I was I was in Australia I was.

The region magistrate I was
already being told that within

nine months I was going to take over
the division I was going to be promoted.

And.

The company.

Wanted to a joint venture with
its butler in the Philippines.

Was losing money.

And it had a thirty percent share
against Pepsi was seventy percent.

The relationship between that daughter and
the Coca-Cola company it was not

particularly good to have had been very
bad but they managed to construct a joint

venture where they recapitalize the
business coke got thirty percent equity.

Difference thirty percent the share
that with us thirty percent equity and

got the right to put in.

The president general manager
plus also two other positions.

Treasurer and.

For that financial officer.

And.

It was the rest of it was this
organization that was it wasn't working I

mean we're still losing share losing
money so I went and I asked people.

Do you think I should do this job you're
crazy you're crazy that's never going to

work that is the most ridiculous
that look at the situation.

And I had to technically
leave the company and go on.

Kahneman the only guarantee I was getting
was that would rehire me in the position I

was in when I left so be for
years given up and probably out failed so

that wouldn't but it was it was
a it was the end of my career and

senior people in the company
people senior to me said look.

Being a management change and so

they were also saying that you're
your protectors gone as it were.

You know this is a message that
the shoving is a message but

just don't don't do that hang on where you
are you've got a promotion coming just

just don't do it I went there I spent
a week there I looked at it and

I said yeah boys I miss this
could be fun I like Mrs.

I I think I could do this.

And I went there and four years later
we are still Pepsi seventy thirty.

It made my career.

There were.

It I wasn't offered the job necessarily
because they thought I was the best person

for the job because there are seven other
people who turned it down before me.

Which means a seven other people they
thought were better than I was a doing it

OK all right but
I'm the dummy who said OK yeah I'm up for

it so that's my view that's
a real personal story

that was the biggest jump in
advance of it in my career and

there's this risk but I said to myself
you know I was young enough I was thirty

seven thirty six thirty seven it
doesn't work I'll get the experience

I think I'd find something else but
about enough confidence to do to do that.

I wasn't I had no view that I
wanted to fail obviously but

you know if that was that
was it I could do it so.

I think the people.

Just about every person
who is being successful.

Has taken risk.

It isn't linear success it doesn't doesn't
happen that also that make mistakes

the messed up and
the ability to got my mistakes but.

There we all will make them a defect.

We learn more from our mistakes than
we do from our successes as well

I would say that is something else but you
feel you know you've got to be honest for

yourself and analyze why you screwed
up as well when you would you do.

Other bike.

Over the back on the right
my name is still Knight and

I actually graduated with my M.B.A. last
year so I'm just about done place now so

I wanted to ask you back when you started
with Coca-Cola is still sort of the norm

at least here in the U.S. to stay with
the same company for forty years and

I don't obviously isn't the norm these
days that most people get is usually about

ten years so I was wondering if looking
back on your career and it's sort of ties

in to what you were just talking about is
do you wish you had left Coca-Cola and

gone to a different industry or to
a different company within the industry or

are you glad that you stayed at Coca-Cola
for the long haul now I've got to.

Go but I mean the reality is that
there are the head hunters out there.

I was good I was head out to the few
times I looked at other opportunities.

And some of them were going up quite
seductive some of them were quite

interesting but at the end of the day I
just decided that actually I was better

off than Coca-Cola because I'd be very
lucky the opportunities of come for me.

At a young age and
I've been able to be able to grab them so.

I looked outside and I look seriously
outside and I got close sometimes and

then sit now I don't think if you want
to guess the other I'm going to stay.

I don't anticipate that's going to
happen to maybe any of you here were too

many of you I see that that's not a goal.

To have a goal that going to stay one cup
the rest you're like that's that's that's

not acceptable.

They don't you do as you
avoid getting into trouble so

that you know you can stay there.

That's not motivating
that's not rewarding.

And it's to me is just not even an
objective so staying with one company for

forty three years is an accident of
continually analyzing where you are and

what you're doing OK I've
just a happy accident.

Don't forget I did come back for
retirement saga and

I was I had to be recruited.

Actually I thought funny funny story so
I'm in Barbados retired.

That's my base.

So to come back around the Coca-Cola
Company I need a work permit.

And I got to go to the U.S. embassy
in Barbados get my work get the work

fill in the forms what have you and
you go there in the interview process and

of course this is post nine eleven so you
know there's this great big bulletproof

glass thing with microphones and
you stand there the guys behind it and.

So everyone can hear what's being said
to a lot and three along what have you.

And this big burly guy says to me
behind it he says so you says so.

Why you why should I prove this
he said Are there any Americans

that are good enough to
run the Coca-Cola company.

You know I said to him I said well I said
the only the only thing I can say is I

don't know because the board of
directors offered me the job and

they're all Americans.

And he looked at me as if to say so.

Smartass you know if you looked
at me I had a wife stepped up and

that was it I I got my work
I got my work over there

are you.

Hi My name is Erica I'm also a recent
graduate and natural engineering So

my question is related to talking
about social responsibility and

its importance to Coca-Cola.

I'm not sure this is my question but
I'm what is soon perhaps someone in

India would view social responsibility
differently than someone in Europe.

But I'm not sure what is your opinion
it's kind of a two part question and

then the second part is how do you feel
with all of the global integrations

that were just recently announced
Do you think that will help or

hinder Coca-Cola social
responsibility vision and.

Well.

I think in terms of.

Issues the issues are not
necessarily different.

But around the world but always between
India and the West world but I think

they're much more granular because people
are worried more about the day to day.

But the policy in the philosophy and
the like so

I think you're dealing.

A governmental level in India you're
dealing with the same way policy

frameworks etc But in terms of of.

Individual consumers.

Different level of engagement the
marketplace different exposure to the rest

of the World War basic about me today
rather than just about me today but

what about tomorrow OK.

So that difference is there.

But.

The.

Sometimes those come bang together.

If you see in China today and
it happens in India as well but

in China protests about polluted rivers.

Protests about you know land
being being taken away and

therefore it it actually
becomes a real Into of matching

the environmental pressure
against corporations.

At India level as it does
on a global level and

of course now with the Internet
everything goes to connect.

And some of what's got it
wants to say what but didn't.

You know get into all sorts of
trouble about a plant in India.

But taking taking the water and I was an I
was a Rhonda that times I can comment

about it well all I can say is that.

We closed the plot.

And you still read on the internet about
depletion of water from that particular

area the rate of decline this was in
my period of time as I know the data

of that aquifer accelerated
after the plot was closed.

Because actually the cooked up was one
percent of the offtake of the aquifer and

the real issue was agriculture and
irrigation.

But the penalty for being Coca-Cola I
mean there's a benefit to being Coca-Cola

mediately recognise it opens doors as all
sorts of things but boy does it get blamed

for all sorts of things doesn't it and
if you want to make a point.

You're want to get attention.

You choose you choose
the big back you go and

I'd rather it was that way than we were
in consequential all known and irrelevant

OK.

Thank you.

Michael Card.

Now I'm a mechanical engineering master
student when I was travelling through

the rainforest in South America I came
across a town in maybe one of the very few

things I recognise from its more modern
world would be a typical assign and

I was just curious as you was that a goal
of the company to get basically global

penetration of your products and if so
was that for financial reasons or

were there other motives in that.

Yes it was a goal and yes it was for
financial reasons because that's what

the business was then how you do it then
comes into it you know values and what

have you but at the those early stages
it was getting the stakes in the grog

getting out there and getting to consumers
because at the end of the day we're about

refreshing the whole world so you want to
get out to the most extreme places and

I mean that when I was working in Zambia.

I remember meeting missionaries so

be a little bit like you and
they would say well how on earth.

You got I got to this remote village and
there's a Coke sign and

some guy selling Coca-Cola well.

The.

Interesting piece about how that
happened or what why that happens

is first of all Coke of sort of all
the way through how you get out there and

you get it out through local people so
that.

That's.

In the Africa example OK.

What we used to do what we did was if you
put ten cases a product we would give you

a free metal side and
six nails not even a hammer six twelve.

And off you go I've got the old
photographs of the guys with this dugout

canoe with ten cases of coke piled up and
there they are off up the canal off back

with a metal side to go put it up there
to press the machinery at the end of it.

But apart from that sort of feel.

Inside of that.

The why it works is
everyone along that chain

from the Coca-Cola Company Donna North.

To the guy with the little mud hut up
in the middle of nowhere in Zambia

makes money along the way.

And the best example of that working.

Capitalism working positively
is the cell phone.

It's exactly the same way when
someone dripped up you know the.

Pace pays you go.

By the by the card.

That has that's fundamentally
changed Africa fundamentally changed

the the cell phone usage is
amazing it has disaggregated

some of these replaces merchants who.

Were able to get out pay
the fishermen very little for

their fish fishermen now it's got
a catchy phones up directly into

someone who wants the fish in the store
and you can get a better price.

But what it's done is it's also free
there are people in that system as well

to the guy who's selling you know what a
minute of time the little chip with a bit

of time and
he's got a little business out of it so.

The.

Talk about this with regard
to the World Wildlife Fund or

you talk to him about
it with regard to care.

If you're trying to get retroviral
out there if you're trying to get.

A little bit of a Larry and
that's program in which I personally fund.

But if you try to get nets out there you
need to have some money along the way for

people to be able to to benefit from that

otherwise you get I have
photographs of this.

The with malaria nets Distr.

Through governments and.

There's a video out of this one.

Where there's a huge government warehouse.

Full of malaria nets and

the villages don't have any using any
nets and the interview with a government

bureaucrat was well wired that it's not
that well no one comes to get them.

But my job put it out there.

Whereas if you were to just
get that out into stores and

someone were to charge
a nominal amount of money for

that that would get the distribution out
there that merchandise at market and

you get out there you save lives.

So I get it endorsing capitalism but
part of part of it therefore is

people will then take a few pennies in to
be able to go to their dugout canoe and

that's why you go to the wilds of the I
was it that pushed back a little bit of

money for their family out of Coca-Cola
and you get a you get a Coke probably got

a cold one but you get a coke anyway.

My name's out of the interest.

And I had a question you said that
education is not about diploma but

it's about exploration and I was wondering
if it was exploration they kind of led

you to go back and work again or I was
wondering what exactly brought you out of

retirement because it's not
something that people and yeah yeah.

I've heard of the I'll tell you
the story basically because.

Logic would dictate that it's
something that I why would I do it.

And.

You know there was a buzzer rod that
somebody got that like it's going to

happen so it wasn't something that I was
a total surprise when the phone rang and

they said we'd like to throw your
hat in the ring to come back.

But I talked to my wife about it to us.

You know the worry I'm
going to do this is crazy.

I mean here I am sixty one.

I'm in retirement we've got all
set up we would planned it.

Because we also have a house and
we spend summer in France and

why on earth would I want to do it and
you know I go to work seven days a week

I mean it is really stressful
job you look at photographs

of me what I was writing Coquet I
was about fifteen pounds heavier and

B I look pretty darn tired OK
the stresses of that job are immense no

one really realizes that the stress
is it's almost all the time OK and

I knew that and
I said well why would I want to do that.

So then of course actually the offer K.

was just a rumor the offer came and
I got the phone call I said why but

don't worry I'll get a phone the by sit
up think about it but I'm going to do it.

So logic good logic solid logic dictates.

And then she would say to me Well if you
find Coke and not think about it I'll.

Sleep on it one more night.

And you know keep sleeping on it and
then we get to deadline time.

And then I woke up and
I had to say to her I'm going to go do it.

And first words where you're what.

And what happened was this and.

I had been asking myself
the wrong question.

Question asking myself why
would I want to do this for

all the reasons that I just I
mean it doesn't make sense.

But the right question was
Can I live with myself for

the rest of my life when I
ducked the ultimate challenge.

And if you're all about challenging or

all about doing things when
I looked at them or it was.

You know what I'm going to regret
not doing this I got to go do it.

In many respects I wish hadn't happened
yet it worked out very well for me but

that's beside the point but
it's just this.

Struck me why why not taking on
the chairmanship the World Wildlife Fund

you know three weeks of the bush in Africa
with a group of people looking at things

because it's about growth and
it's well it's also about.

It's also about intellectual
growth the fact talking to old

Coke I hear today I'm done
here who are a few months ago.

Jim is still engaged and
doing things if you do I see a huge

difference in people who retire and
try and

live their life on the golf course or
you know no intellectual engagement.

And to me if you're going to be
intellectually engaged try to

educate yourself find new things to do.

For all of your life and that we do go
to work keep working basically even for

no money but that's that to me is what's
rewarding and I think that's what.

I think in the aggregate it
keeps you it keeps you younger.

I think we're.

OK I'm OK I'm just trying
to follow the rules.

Yeah.

OK My name is Mike I'm a Ph D.
student here in biomedical engineering

I really appreciate your commentary on
social responsibility I would imagine one

big problem for Coke moving forward
is the implication of soft drinks and

carbonated soft drinks in the obesity
epidemic so I'm curious as to your take

on whether Coke sees that there may be
a role for social responsibility in this

regard and maybe how they might approach
that is she moving forward Absolutely and

that was one of the things behind
the developer the Coke Zero.

You know.

I don't want to go into
defense mode as it were but.

You look at.

The the the the initiatives that
Coke has gone up with small or

you see a lot of smaller packages.

Down sizing downsizing packs
the stop Bloomberg and other issue.

To PACs but also major push behind.

So there's a huge opportunity for
the Coca-Cola company because.

Coke Zero Diet Coke we can give
the consumers not one calorie.

Not one calorie and you can be
hydrated in the best possible way and

zero huge success around the world.

We don't yet know five.

Because if we use the Coke formula
cook forward is not in Diet Coke and.

That that's meant that you know
that the mother load is there and

it tastes very close to
coke as we can get it so

I don't think that we have to be
defensive for the word got to that and

that the truth of the matter is that diet
soft drinks have gone from thirty one

percent of sales to forty two percent
of sales over the last ten years.

And actually the full in
the United States and also New York.

Full of sugar full calorie
Coca-Cola has declined.

And it this is an individual
citizen this is not

representing the Coca-Cola Company I
don't quite get it.

That you use ten year
growth in obesity data and

full calorie is actually going to
there's other things that are volved And

I think we have what we haven't done and
this is where Coke then has to get big and

that's what they're doing think
about trying to get people

to look at the issue overall because
the other data point is over the last.

Is children are spending thirty percent
less time on physical activity.

At the end of the day it's
about calories in calories out

I mean it it it's just
it's just simple you know.

I got heavy by not exercising and

eating to eating too much when I was head
of coke and I afterwards I changed it or

out I go to the gym bag it I get fit and
I eat better.

And that's that's the equation and

we got to try to think about
it hope holistically so.

That's very difficult to do and.

Again it's easy to cope and that's it I
mean Coke didn't exist I'm not sure what

the calorie count difference would be
a very day for the average American but

it wouldn't be very different I can
tell you that you know if you're bad it

completely would coke or Coke and
Pepsi and all Cobre soft drinks so.

You know we're always looking for
simple solutions to complex problems

there are no simple solutions to complex
problems but people find it very

difficult to deal with with the complexity
of it that's that's the issue.

OK.

Russell the Tromp grad
student building construction

given the geographic you're builder
you're better at the bank or.

Muslin army officers.

Given the geographic dispersion and
size of Coca-Cola can you speak on some of

the challenges for maintaining Uni of
effort throughout the company specifically

delivering the objectives from the top
all went down to the ground level without

losing the intent and
the values of the corporation as a whole.

Yeah I think the most important
thing is that you have a very

clear coherent strategy.

Which.

And in the system.

The strategy in place now we did we
did use the whole of the global system

in terms of developing it and that's a
long long story about how we did that but

clarity of strategy
maintaining that strategy and

therefore and also researching
against how people feel about it and

what's wrong with updating it I mean
the strategy that I put it over five

talk is updated but
it's the course still the same.

The the.

In fact it's more of a managerial thing
that it is about a global global thing

because if you've got that coherence of
strategy and and you adapt it by the way

there are there are things that are more
important and other parts of the world.

That you no one want to the other but
if the core of it has that integrity and

you keep it going for a lot of time people
understand exactly what they're supposed

to be doing and that drives behavior
it drives consistency of behavior.

That's why I talk about you
know strategic coherence and

one of the worst things
that happens is that.

When management change
strategy changes and

that throws organizations out completely.

People want to put their
own stamp on it and

were taught was my successor was
part of developing the strategy and

if you look at it it's it's
fundamentally the same strategy and

it's been out there now nine years and
he's taken it as a vision to twenty

twenty so
people know you know where we're going.

And I'll give you another example.

Of how how even those buzzwords.

Of what you do a very important.

General Motors I'm on the board
of General Motors and

I was on the board of General Motors
at the top of the bankruptcy so

I've been pre-bankruptcy
in post bankruptcy.

Whole of things that General.

As did badly but

one of the things that was it was it
was run too much by the finance types.

And it was all about the bucket and the
bottom line and what fell in the bucket.

So what did you do you put a plastic piece
in instead of something that was metal

and you save twenty five cents and

therefore you cut your costs
the consumer looked at it and

said Yes I don't want to buy that car OK
That's part of the problem a micro thing.

So the the over the overarching
statement about what the new G.M.

is all about is we design.

We build and
we sell the world's best cars.

It's all about the car it's
all about the consumer.

It's nothing about what Wall Street
wants which is the profit those metrics

are there but that's not what we're all
about because in this we do the best

we design build and sell the world's best
cars nothing's going to fall in the bucket

the money bucket if you do that's a pretty
well it falls in the money bucket OK and

the companies that lose it
I would argue that Toyota

one of the problems because
superb organization.

All about quality all about
the car everything and

all of a sudden they decided they wanted
to be the world's biggest car company.

As what I called the Monday
morning meeting question.

And it used to be about what were
the quality numbers they assume that that

was there.

But the real question became how
many cars you sell asked week.

So then you start short cutting cutting
corners on all the other things so

I it's integrity of strategy and
focus on what really matters and

focus what's right for the consumer and
then the geography really doesn't doesn't

matter that it's tweaks
nuances cultural differences.

Which you can which you can
manage with within that.

OK Mr ACZEL thanks for
coming in Georgia thank you so much.

Thank you.