When Muhtar Kent, president and CEO of The Coca-Cola Company, took the podium Nov. 12 to accept the United States Council for International Business's (USCIB) top honor—its International Leadership Award—the 250 guests in the Empire Ballroom of the Waldorf-Astoria put their hands together to generously applaud a businessman with a global mindset.
Sen. Chuck Hagel of Nebraska was among guest speakers at USCIB's gala in New York City as was Hal Scott, Nomura professor at Harvard Law School and director of the Committee on Capital Markets Regulation. Hagel shared a story with attendees about a visit to a high school where one student asked a question that stood out in his mind. That was, ‘why do people go into political leadership roles?' Hagel told guests that his response was one thing that anyone in a leadership role has to honestly believe in: "To make a better world," he said. "Your honoree tonight has fulfilled that high standard."
Kent said that he was humbled and honored to be the recipient of such a prestigious award and extended acknowledgement to the 800,000 Coca-Cola associates around the world that work hard every day to bring billions of consumers "little moments of pleasure," he said.
Kent, who attended the gala with his two children, didn't focus on reminiscing on his leadership accomplishments of the past, but chose to discuss some of the daunting global business concerns that leaders across the world are faced with today. These include the challenges of economics, education, job security, sustainability, business ethics and international trade development.
Kent turned to the business model of Coca-Cola as an example.
"For over 100 years now, ever since Coca-Cola expanded beyond the boundaries of the United States of America, The Coca-Cola Company has been a very important part of the fabric of global society," he said. "The Coca-Cola philosophy was to be a positive force for economic growth, for human welfare, for community development, in every single market that we operate in. The business model was based actually on hiring locally, manufacturing locally, distributing locally and also sourcing ingredients locally… I'm proud to say that our philosophy and approach has not changed."
That philosophy of the Coca-Cola system has proven results. In his introduction, William Parrett, USCIB chairman, noted that Coca-Cola recently reported positive third-quarter earnings. Coca-Cola derives about 73 percent of its revenue and 81 percent of its profits from sales abroad.
But despite the seemingly encouraging numbers, the economic crisis that all businesses are facing today continues to loom overhead. Kent brought to attention that with that crisis comes the affect of economic isolation and anti-globalization. "There is no question that we are facing a significant disconnect with our greater public," he said. "I would argue that never before has the need for international trade and advocacy been more important than right now."
He spoke strongly to the crowd encouraging them to make greater efforts to support global trade and work together to show how it benefits businesses and the people it touches.
From left, William G. Parrett (USCIB Chairman), Hal Scott, Muhtar Kent, Sen. Chuck Hagel and Peter Robinson (USCIB President & CEO) join together around the International Leadership Award.
Kent highlighted specific areas where potential partnerships could be made. He spoke about aligning educational systems with the global marketplace, collectively supporting programs and policies for career development, the importance of understanding that corporate diplomacy is becoming as important as political diplomacy and the need to work harder to promote climates for investment and innovation.
Having held numerous positions at Coca-Cola and his leadership role as president and CEO of the Efes Beverage Group from 1999-2005, Kent has demonstrated his understanding of international diplomacy.
Looking back on American history, when Kent, son of a distinguished Turkish diplomat, first embarked on his professional career after college in the late '70s with The Coca-Cola Company, he recalled the mood of Americans then to be similar to how they are today—fearing that the United States would lose its role as a global leader.
Kent said: "But what happened? America got stronger because this great nation did what it always does best—reinvent itself and innovate."
In the beverage world, innovation has also been linked to success stories. Kent became CEO of The Coca-Cola Company in July 2008 after holding the president and COO title since 2006. And it was innovative products like Coke Zero, for example, that helped catapult Coca-Cola sales in a declining CSD market.
What Kent believes will help catapult the state of the nation and the global community is the same thing that turned the tide in the late '70s. "Because of innovation, a nation that cultivates diverse cultures, diverse people and diverse points of view came together as a whole," he said.
"I truly believe that we can come together, all of us, as leaders from business, from government, from civil society and play a huge, huge role in the promotion of education, job retraining and business diplomacy abroad."
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Sen. Chuck Hagel of Nebraska was among guest speakers at USCIB's gala in New York City as was Hal Scott, Nomura professor at Harvard Law School and director of the Committee on Capital Markets Regulation. Hagel shared a story with attendees about a visit to a high school where one student asked a question that stood out in his mind. That was, ‘why do people go into political leadership roles?' Hagel told guests that his response was one thing that anyone in a leadership role has to honestly believe in: "To make a better world," he said. "Your honoree tonight has fulfilled that high standard."
