Soda Pop and Social Enterprise

Coca-Cola is the largest beverage company in the world. In 2009, it was ranked number 73 on the Fortune 100. They had profits of $5.8 billion and revenue of just under $32 billion. Coca-Cola is a money making machine. They are also on the forefront of bringing products and services to the poorest people in the world.

Below is a video of former Coke CEO Neville Isdell talking about Coke's presence in Africa and their commitment to sustaining their company through sustaining local communities.

In 'The Power of Unreasonable People', John Elkington and Pamela Hartigan say that social enterprises usually fall into at least one of three categories:

(1) the "Leveraged Non-Profit" (2) the "Hybrid Non-Profit" (3) the "Social Business"

Coke is a for-profit company so it certainly does not fall into either 1 or 2. It is difficult to argue that Coca-Cola can qualify as a social business; a for-profit entity focused on a social mission. Coke's primary mission is to make money even if they do realize that it's actions have an exponential effect on developing economies.

Coke does not fall seemlessly into Elkington's and Hartigan's definition of a social enterprise but it is committed to the African continent. In the past decade they invested $6 billion in the continent with plans to double investment to $12 billion over the next ten years. Coke see's a market.

Although it does not fall into Elkington's and Hartigan's classic definitions it is following their model for success in emerging markets. Coke's story is particularly interesting because it is a story of sustainability through leverage. Elkington and Hartigan state that "One central goal for such enterprises [social enterprises] -- and those who fund them -- is leverage." In order to make a sustainable business case in Africa, Coke has been successful in leveraging the indigenous labor markets, social capital, philanthropic support (through various entities of the Coca-Cola Foundation ), and business partnerships. Successful leverage has led to vast profits in markets that were previously untapped.

Simultaneously, the local communities are leveraging Coke to produce jobs. In the video above, Isdell comments that for each job Coke creates five additional jobs are created. One could say that where Coke goes commerce grows. Coke presents an enticing opportunity for emerging social entrepreneurs to impact the world on a huge scale.

Nevill Isdell was raised in Africa since age 10. Coke's current CEO, Muhtar Kent, is an American of Turkish decent who spent time in the Turkish military. Africa and the Middle East are both developing economies. As stated, Coca-Cola believes their future growth will come from emerging markets.

As we move forward in the 21st Century, how will the demographics of global executives change to help companies penetrate new markets?

The United States is currently home to the worlds preeminent educational institutions. In the 21st Century, how will formal degrees be weighed against first hand global experiences for business professionals? Will we see global firms recruiting more heavily from USAID and the Foreign Service?

Global experience has always been valuable but I think there will be a premium moving into the future. Those who cut the mustard will find themselves in positions to do both well and good. In the words of Neville Isdell, "There is the business opportunity for you, but that opportunity is for the broader benefit of this whole world and particularly to poor people in this world."