Monday, September 11, 2006

Baby steps

From the Grist:
"In January 2006, the University of Michigan suspended the purchase of Coca-Cola products on its campus...the university cut the contract because of concerns over environmental issues in India and labor issues in Colombia. Corporate decision-makers should pay heed: this event is notable on several dimensions. "

"First, this decision was not due to any problems with product or pricing. Instead, the university cut the contract because of concerns over environmental issues in India and labor issues in Colombia. Second, and more amazingly, the decision was prompted by one man and the small nonprofit he runs out of his home in Southern California. Amit Srivastava and his India Resource Center have mobilized students on the Ann Arbor campus and elsewhere to petition their administrations to ban Coke from their campuses, and they are succeeding. Third and finally, this unusual form of pressure is leading the company to do something it would never have previously agreed to: open its overseas facilities to independent, transparent, third-party environmental and labor audits."
"Last year, the actions of a tiny nonprofit mobilizing college students over foreign environmental and labor issues was not considered relevant to the bottom line of Coca-Cola. Today, the decision of the University of Michigan (and more recent decisions by some Indian states to close Coke plants and ban both Coke and Pepsi products) has moved the issue squarely into the good-management quadrant."
Things do change, just not quickly or easily.

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