Overview
Every economy is characterised by some degree of political or government participation. The extent, forms and quality of this participation differ around the world contributing to the political risk and complexity faced by international business. However, firms develop strategies to manage and mitigate actual and potential political risk.

Activity description
The Coca-Cola Company is a MNE that operates in 200 countries. The company is transparent in its participation in political activities. Participation takes the form of lobbying, contributions to political candidates to fund their election campaigns, membership of trade associations, and direct advocacy. The company justifies participating in political activities as a responsibility and duty to make their views clear to politicians who impact laws, regulations, and policies that influence Coca-Cola’s global business.

Go to the website and read the Political Engagement Policy that focuses on the role of Coca-Cola in the political processes in the United States of America.

Consider:

• Why would Coca-Cola actively pursue involvement with public policy?
• What type of public policy may have a negative impact on the business of Coca-Cola?
• What type of strategy does Coca-Cola follow to manage potential or actual political risk?
• What are the advantages of trade association membership for Coca-Cola?

Visit the following website:
https://www.coca-colacompany.com/investors/political-engagement-policy