US embassy cable - 04ACCRA1528

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