KO article from Atlanta
<<Coca-Cola Co. has a way to go to establish the company again firmly as a darling of Wall Street, but last week it took a big step toward winning local community support with business partners.
By establishing a planned $1 billion five-year program to help minority and women business owners, the company can create goodwill and at the same time, accomplish a serious business objective --- link arms with a major growth sector in the national economy.
In the long run, hundreds of small-business suppliers could grow into major suppliers for Coke, as well as for industry at large. To ensure success and growth among the businesses, the company plans to mentor and work closely with the suppliers.
The announcement drew encouraging comments all around, even from Larry Jones, an organizer of a Coca-Cola boycott, who said it was overdue. He also called for the same kind of effort in settling the lawsuit brought by African-American employees.
"Coca-Cola has shown in Africa how to work closely with communities and build small enterprises," said Harold Jackson, president of the Jackson Heath Group, a community relations and consulting company.
"More than a million people in Africa owe their employment to Coca-Cola joint operations there," said Jackson, who has consulting clients in Africa.
Jackson said his own company is partially an outgrowth of a previous, smaller effort by Coca-Cola to encourage minority business grown through supplier ties.
"If Coca-Cola really takes a long-term approach to this and sticks with it, it could be very helpful, and if it maintains long-term relationships it can be empowering to communities."
Jackson and others say United Parcel Service, another major Atlanta headquarters company, has established a similar supplier support program that is gaining commendable results.
Pat Lottier, publisher of the Atlanta Tribune, a periodical that has been reporting on black-owned businesses for more than a decade, welcomed the program and said it was especially needed in Atlanta, home of many would-be suppliers. Coca-Cola says it will operate its program in as many as 50 communities, eventually to include Atlanta.
"I would love to see them extend this by encouraging their large suppliers to employ subcontractors and smaller suppliers,'' she said.
In a dramatic move to underline the principles espoused in the new program initiative, Coca-Cola spun off Global Tech Financial, a huge financial services unit that will service loans, leases and other instruments for the company but also use its experience to provide similar services for other major companies.
Carolyn Baldwin, a veteran financial officer of the company, who happens to be black, is resigning as president of Coca-Cola Financial Corp. to head the new independent financial services company.
In other moves, the company said it was establishing ties to minority banks and insurers to retain their services as part of the new initiative.
Carl Ware, a Coca-Cola executive vice president, who built close ties with Africa when he oversaw the work there, underlined the deeper significance of this kind of initiative.
"Through these efforts," he said, "we equip talented individuals with the skills to lead, and work with our neighbors to build strong communities and foster a climate of entrepreneurial opportunity for minority and women-owned companies to succeed."
For the sake of continuity and to make sure the job is done, Coca-Cola has designated a seasoned manager to oversee the project.
James Chestnut, executive vice president for operations support, will monitor the program and report regularly to the chief executive.
Asked how he would make sure procurement officers follow through and keep the ball rolling with the suppliers and providing mentoring, Chestnut's answer was direct.
"That's my job." >>
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