Coke Share Value

Coke Share Value - Why Share-Owner Value At The Coca-Cola...

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Why Share-Owner Value? At The Coca-Cola Company, our publicly stated mission is to create value over time for the owners of our business. In fact, in our society, that is the mission of any business: to create value for its owners. Why? The answer can be summed up in three reasons. First, increasing share-owner value over time is the job our economic system demands of us. We live in a democratic capitalist society, and here, people create specific institutions to help meet specific needs. Governments are created to help meet civic needs. Philanthropies are created to help meet social needs. And companies are created to help meet economic needs. Business distributes the lifeblood that flows through our economic system not only in the form of goods and services, but also in the form of taxes, salaries and philanthropy. Creating value is a core principle on which our economic system is based; it is the job we owe to those who have entrusted us with their assets. We work for our share owners. That is – literally – what they have put us in business to do. Saying that we work for our share owners may sound simplistic - but we frequently see companies that have forgotten the reason they exist. They may even try in vain to be all things to all people and serve many masters in many different ways. In any event, they miss their primary calling, which is to stick to the business of creating value for their owners. Furthermore, we must always be mindful of the fact that while a healthy company can have a positive and seemingly infinite impact on others, a sick company is a drag on the social order of things. It cannot sustain jobs, much less widen the opportunities available to its employees. It cannot serve customers. It cannot give to philanthropic causes. And it cannot contribute anything to society, which is the second reason we work to
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This document was uploaded on 10/07/2008.

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Coke Share Value - Why Share-Owner Value At The Coca-Cola...

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