The Bud Light Effect: Coca-Cola Shareholders Reject Going Woke In Fear Of Going Broke

Coca-Cola shareholders recently met and voted against a proposed survey that would determine how state laws restricting abortion would impact the company's business performance in those states. 

The proposal was put forth by the non-profit As You Saw, which promotes ESG policies within corporations, per Barron’s. As You Saw put forth the research idea citing that women who do not have access to abortion are more likely to drop out of the workforce. 

The proposal put forward stated, “Shareholders request that Coca-Cola’s Board of Directors issue a public report prior to December 31, 2023, omitting confidential information and at a reasonable expense, detailing any known and potential risk or costs to the company caused by enacted or proposed state policies severely restricting reproductive rights, and detailing any strategies beyond litigation and legal compliance that the company may deploy to minimize or mitigate these risk.”

The activist group went even further, putting forth the bold statement that the board of directors, at their discretion, may elect to entirely cease operations within states that have abortion restrictions.  “In its discretion, the board's analysis may include effects on employee hiring, retention, and productivity, and decisions regarding closure or expansion of operations in states proposing or enacting restrictive laws and strategies, such as public policy advocacy by the company, related political contribution policies, and human resources or educational strategies," the non-profit added.

The shareholders conducted a vote on the measure, ultimately voting it down with 87 percent against the idea. It is worth noting that voting is done based on the percentage of shares owned as opposed to a one-person-one-vote system. 

In response to this, Coca-Cola issued a proxy statement against conducting the survey, stating that their “robust risk management processes” are perfectly capable of handling the matter themselves. 

If Coca-Cola were to put forth this idea, it would have immediate ramifications on its headquarters which is located in Atlanta, Georgia. Georgia currently has a law restricting abortion within six weeks of pregnancy, per NPR. 

Many other bottling facilities are also located within the southern United States, which has a concentration of restrictive abortion laws compared to other parts of the country. According to Coca-Cola United, the majority of its bottling centers exist within Alabama, Georgia, Louisiana, and Tennessee. The vast majority of sales centers also exist within those states, as well as Mississippi and Florida. 

Within every state listed, lawmakers have attempted to pass legislation that would restrict or outright ban abortion, with only Florida being blocked by its Supreme Court, per the Center for Reproductive Rights. 

The decision would bring major changes to Coca-Cola's business, so it’s ultimately no wonder the business was fine with not pursuing any further investigation. It only goes to show that companies that wish to go woke will inevitably go broke.