Coca-Cola shareholders on Wednesday overwhelmingly rejected a proposal from The National Center for Public Policy Research that demanded the beverage giant be more transparent in its political positions.
Just 2.05 percent of shareholders approved the plan at the Atlanta company’s annual meeting held Wednesday at the World of Coca-Cola, according to preliminary results.
Coca-Cola’s board had recommended shareholders reject the proposal, arguing that “existing policies already account for what is being requested.”
The Washington, D.C.-based group said it has been disappointed with some of the positions Coke has taken on issues, including “religious liberty,” and its separation from the American Legislative Exchange Council or ALEC.
Coke is one of hundreds of companies that called on Georgia legislative leaders to reject HB 757, a “religious liberty” proposal that would allow faith-based groups to cite their sincerely held religious beliefs to decline service to couples in relationships with which they disagree. The bill passed but was vetoed by Gov. Nathan Deal in early April.
In its proposal, The National Center for Public Policy Research said it wanted Coke to “develop coherent criteria for determining congruency, such as identifying some legislative initiatives that are considered most germane to core company values.”
The group, which owns 90 shares, also wanted the company to report annually the risks contributions to organizations with political objectives have on Coke’s brand, reputation and shareholder value.
Coke CEO Muhtar Kent said while he understands not every shareholder is going to agree with positions the company takes, Coke can have a positive impact when it takes a stand. He added that sometimes those stances are good for the company’s bottom line, though he did not elaborate.
“It provide an important avenue to protect the interests of the company,” he said.
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