Back
Muhtar Kent
Former Chairman & Chief Executive Officer, Coca-Cola Company (The)

CNN's Piers Morgan Speaks with Chelsea Clinton, Muhtar Kent and John Chambers

🎥 Sep 01, 2013 📺 Clinton Global Initiative ⏱ 22m 👁 2737 views
At the 2013 CGI Annual Meeting CNN's Piers Morgan spoke with Muhtar Kent, Chelsea Clinton and John Chambers about mobilizing youth around the world.
Watch on YouTube

About Muhtar Kent

At Coca-Cola's 2019 annual shareholders meeting, outgoing Chairman Muhtar Kent responded to activist Ray Rogers' allegations of human rights abuses at Coca-Cola facilities in Latin America and elsewhere by stating that "nothing could be further from the truth of those allegations" and that "there's just no ground to any of those allegations." Kent said the company sees "eye to eye with all our bottlers related to issues of adhering to the highest standards of human rights," but noted that bottlers are "independent companies run by independent leadership teams" and that "not everything can be dictated to bottlers." He said the company would continue to work with activists to "influence" and "bring matters to a better place." In a 2018 CNBC interview, Kent described the global business environment as characterized by "volatility, volatility, volatility, and more unknowns," adding that "running a global business is just getting tougher and harder" due to socio-political dynamics. He said he was a "realistic optimist" that the US-China trade dispute would be resolved "for the benefit of both countries and the world." Kent also said that while Coca-Cola is "the quintessential American brand," the company is "so local" in China, noting that its ownership includes Chinese state-owned and Chinese enterprise partners.

Source: AI-verified profile updated from Muhtar Kent's recent appearances. Browse all interviews →

Transcript (50 segments)
✨ AI-enhanced transcript with speaker attribution
P
Piers Morgan0:02
Right, here we go again. So Chelsea, we heard what your dad said. He basically thinks you now know it all and almost certainly going to run America. So, thoughts?
C
Chelsea Clinton0:09
Oh, um, I'm grateful that I have a proud father. Again, very political. Um, let me start with you, Muhtar. Obviously, both you gentlemen, two of the most experienced bosses of two of the biggest companies in the world. The key issue, it seems, talking to almost everybody that I've talked to at the UN GA and also the CGI, is jobs, jobs, jobs. How do you get this situation of this younger, larger population around the world into work, particularly when their skill base perhaps isn't quite what it needs to be to work for someone like Coca-Cola?
M
Muhtar Kent0:49
First, both companies start with a C, so we've got something in common. I think we also see that it begins with growth. You know, you've got to find ways in today's environment, first on a micro basis, to crack the calculus for growth, continue to crack that calculus for growth. And growth, repeating growth, achieving growth is one thing, but repeating growth is much more difficult in today's environment. So what can you do? That's what we look at every single day. What can we do to continue growing in the world? And you might have said growing is easier in emerging markets than in Western markets, but we look at the whole world and we say we've got to grow everywhere, different rates of growth obviously. And when you grow, you can invest, and when you invest, you can hire. So we are hiring, we are growing. The last five years, we've added about 15,000 jobs every year to our pretty big base of 700,000 around the world.
P
Piers Morgan1:51
How many cans of Coke do you sell a year?
M
Muhtar Kent1:54
We get invited into people's lives about 1.8 billion times a day. And that's about 3,000 products.
P
Piers Morgan2:04
How many people, I've always wanted to ask you this, how many people know the exact final recipe with all the ingredients?
M
Muhtar Kent2:11
There are a few. And that's how many, we don't always travel together. So, look, cracking that, you've got to keep on growing, and that becomes much more difficult. If you look at the environment in Europe, and we've heard how difficult it is in places like Greece and Spain, how do you continue to grow, invest, and find avenues for growing your business in the United States? So that's one thing. The second thing is, in terms of jobs, it is a pretty dire situation out there. Because the latest figures are youth unemployment, ILO numbers, 90 million, 100 million. But the real number is much bigger than that. Because if you just take Africa, a billion people, including North Africa, Middle East, about 300, China, and India, you've got almost three, more than three and a half billion people. In just those places, to keep the unemployment level at today's levels of over 100 million for the youth in the world, you've got to generate an additional 160 million new jobs. And we're not doing that right now. Today the number is way below that, so we're actually adding to the unemployment. And so there is no question that it is probably the biggest societal issue today, because generations are for the first time beginning to feel that their future is more bleak than the previous. Then the other thing that we as a company, just to bring it back to reality, what we do is try to connect your passion points as a company, as a business, to creating jobs outside of your four walls. What do I mean by that? We are very passionate about water, and we have a goal for being water neutral by 2020. We respect water and we create awareness to respect water. So we are creating, we've now launched a commitment here yesterday at CGI to place these new machines that make a thousand liters of vaccine-grade, sterile water out of any water, sewage, arsenic, contaminated, any water. We're putting these kiosks out and manning them with women entrepreneurs, young women entrepreneurs. So a passion point gets connected through the Golden Triangle of government, business, and civil society to creating jobs. We're very passionate about recycling. We have a goal to recycle 50% of every package that we sell by 2015. So we've created an organization called Keeco in Brazil, employing 45,000 people recycling and creating also clothing wear out of recycled PET material and selling that. 45,000 people. Those are the kind of things I think that are really important. Veterans programs, we've got a Fitness for Troops program, we hire veterans, and we work with cities. That's an interesting issue because John, you have the same, don't you, at Cisco?
P
Piers Morgan5:22
And listening to this is fascinating to see the thought process when you're running one of these big companies. From your point of view, you wrote a fascinating piece recently about the internet and where it was going, because actually globally internet use is still percentage-wise relatively low. What happens when that accelerates very, very fast?
J
John Chambers5:41
Well, I think with Chelsea in America and one of your earlier panels that said it the best, they said to get employment going back, especially among the youth, and to do it on a gender basis as well, you've got to have the tools, which is the internet and broadband, and then you've got to have the training. You combine those two, that's how you put youth around the world back to work. Give you an idea, you've got to do it on large scale. We do Network Academy, which trains young people to install equipment, be able to do security over it, etc. Started with a small scale, today we have 1.25 million students around the world in these academies. They are much more likely to get jobs at higher paying or go on to advanced education. In the Arab world, let's use Saudi Arabia as an example, 177,000 students a year, 550,000 students through the program since we started. Out of that, 42% are women, because they see the chance to get a job. Jordan, the same thing, 44% are women. So if you have the training and you have connection to broadband, every government leader in the world, and I talk to them all, understand it's about job creation and it's about inclusion of all the groups within their country. Two quick examples. An individual out of South Africa, basically Monik, is an individual who's going blind. We train about 17,000 South Africans a year, and he had a choice between staying in high school or staying in the Network Academy. He took the Network Academy because he felt that if he went blind, he'd have a higher probability of getting a job. Fast forward three years later, gainfully employed, actually was able to get some special lenses which changed his sight. And when I interviewed him the other day, he said, 'John, what I want is a job with you.' And the young lady in Jordan, same approach, and basically, Wafa, she said it gave me a chance in a male-dominated world to really participate. And she skilled through the Network Academy like her colleagues. She led a group of women in a very collaborative environment, that's what the millennials are all about. And today she leads as a first-line manager for us. And when I asked her where she wanted to go from here, she said, 'I want to be your head of services, 20,000 person organization.' Key takeaway here is if you get people access to the internet, you give them the training, you can get jobs. And we need to find a way to do that on a much larger scale. If one company can do it, like Cisco or Coca-Cola, think what we could do with public service. Think what we could do with the million people returning who have protected our countries.
P
Piers Morgan8:06
Let me ask Chelsea about a bugbear of mine, which is that you look at companies like these multinational, global companies, some in particular, someone like Apple who just had the most extraordinary few days of sales of the latest iPhones, everyone going crazy for it. I'm a BlackBerry guy, I'm standing firm. But good luck with that. Yeah, thank you. Yeah, I am the last man standing firm, but I'm standing firm. In terms of corporate responsibility, and I'll get the gentleman to answer after you've had your say here, but it's always struck me as a bit perverse that we have such a chronic jobs crisis in America that you have companies like Apple still outsourcing maybe 90% of their workforce to China or wherever it may be. Howard Schultz of Starbucks has actually started to try and tackle that head-on by opening some factories deliberately in America that he would otherwise have outsourced to save money, and the belief that actually Americans would reward him for that patriotic duty and buy more of his product if he did that, which I applaud. And whether he's successful or not, I applaud it. Is there a, as he put it, a moral capitalism ahead where American global companies should bring more jobs back to America?
C
Chelsea Clinton9:12
Well, I think both Muhtar and John are examples of moral capitalism in their own stories as they just related. Whether it is Coca-Cola's clear commitment to clean water, because I imagine whatever the secret ingredients are in the super secret recipe, water is one of them. You know, I think that commitment will likely be...
P
Piers Morgan9:38
It didn't even flicker. Do you see that? No, it was very cool. He wouldn't even confirm water. Even confirm water. Wow, you'd have been a great James Bond villain.
C
Chelsea Clinton9:52
That I think is a more durable, sustainable commitment for Coca-Cola as a company, not only because of Muhtar's leadership, but because of its clear connection to at least what I presume is a core necessary ingredient in Coca-Cola.
P
Piers Morgan10:08
Not a massive assumption you're making that. In the future you'll find out if you, when you become president.
C
Chelsea Clinton10:13
Oh, I don't know, it's you, the Pope, and the Queen of England and him. An enviable company for anyone.
P
Piers Morgan10:21
Well, let me ask these two chaps now, because it is a serious issue, isn't it? I mean, have you thought about this as a company, about the need perhaps to say, okay, it's cheaper to make cans of Coke in China, wherever it may be, but we're going to bring some back, more than we would have done from a financial point of view, to make a point that we need to re-energize the American jobs market by doing that?
M
Muhtar Kent10:41
Yeah, I think for us, we're such a local business everywhere we operate. More than a thousand factories here across 207 countries, so that doesn't apply to us. But I think the key is what can we do in every country where we operate to continue to create employment opportunities, both inside the four walls of the company but also outside by the multiplier effect. Because all of our companies have so many relationships down the supply chain with people who make our packaging, people who do the advertising, people who give us the trucks, the refrigerators. The same thing with all the suppliers that John's company has. So when we are healthy, growing, investing, the supply, smaller companies, so every study has shown that for every one job that we create, the 700,000 that we have directly inside our own company, our system with our partners, there's another 10 jobs created down the supply chain. That's really important. And whether it's citrus plantations, whether it's juice plant, you know, groves, fruit groves, all of those create jobs down the supply chain.
P
Piers Morgan11:49
Particular fruits are we talking?
M
Muhtar Kent11:51
For us, all fruits.
P
Piers Morgan11:52
I'm trying to get inside your tangled web of secrecy.
C
Chelsea Clinton11:55
But Piers, I do think that there also is a role of government here too, and not just kind of in the ways in which we heard yesterday in the opening plenary where there was a discussion about tax arbitrage. But are we as a country investing in our young people so that Muhtar and John want to employ them in the future? Right. And I mean investment holistically. You know, in our 30-some thousand public high schools, only 6,000 of them have computer science programs, which is ridiculous.
J
John Chambers12:28
Which is ridiculous. And so, to a question I want to bring in General Wesley Clark here. You know, before you jump in, I want to follow up on that because from a corporate point of view, Stan, Wes, this is the first time I've overruled you. If you watch corporate social responsibility around like that for a long time, by the way, corporate social responsibility is a must for the future of capitalism. If we don't, we're going to be on the outside looking in. And contrary to what a lot of people have learned, those companies that are really focused on corporate social responsibility do much better in the countries around the world.
P
Piers Morgan12:57
And does that include though companies like Apple in particular? I mean, they're an example because they're so successful, they do make so many of these phones abroad and then bring them back to America. Where you have that kind of business, yes, should you have a sense of moral capitalism towards it and say, you know what, we need to make more of these in America?
J
John Chambers13:15
The answer is yes. But watch Cisco as an example. We're the only large corporation in high tech that still has been around for 25 years and has the majority of our employees in America. We want to continue to do that. Chelsea's right, we got to have help from government, but also the most successful should be the best at giving back. And this is where, when you win the first Clinton Global Citizen Award, which we did five years ago, or you win an award for basically helping law enforcement and the firefighters support their children who have died in the line of work, that's the right thing to do as a company, but it's also really good to attract the best talented people for it. So corporate social responsibility, giving back by those who can afford it, is also good for growth. And wait, Piers, I'm sorry, stand down twice, we'll get to you. There's a lot of you will make a good leader here, Chelsea. We're going to get along fine. She will be your commander-in-chief, so she's allowed to.
P
Piers Morgan14:06
Oh, Piers. Oh, Chelsea, I think though we could have a comedy routine here. I think we already do.
C
Chelsea Clinton14:18
Um, you know, it's important that people understand this isn't just rhetorical. I mean, John and I were in a conversation yesterday, and CEO after CEO from multiple different industries, financial services, consumer products, said we have consistently seen that our employees that are the most engaged with our corporate social responsibility programs are those that we promote faster, they stay longer, they're our future leaders. So it's not just sort of the morally right thing to do, it also really is the smart thing to do.
P
Piers Morgan14:45
Agreed. And now, by huge public expectation, no pressure at all, but this better be a bloody good question, General Clark. Been waiting for this for a long time over the years. I feel like the paratrooper who's playing, can't find the drop zone.
W
Wesley Clark15:02
Okay, so we're over the drop zone. So my question is, the men and women who come out of uniform, especially the young veterans, you know, we never built the volunteer army to fight a sustained war. We never could have imagined we'd be in conflict for 11 years or 12 years, going on 13 now, and yet that's what we've done. But we can't keep sending the same men and women back into combat again and again and again. When they're 18, when they're 22, they go back again, and 26, they go back again, and so forth. We're destroying lives and families. So when they get out, they've got to have a place in the American economy. President Obama's talked a lot about it, we've done a lot about it, the Department of Labor is working on it. I know there's dozens and dozens of business initiatives, but are we going to be able to sustain this? And are we really getting traction on getting employment for our young veterans? That's the question.
P
Piers Morgan15:52
Well, both these companies have programs that run for the veterans. It's a big issue. Briefly, if you don't mind, but you go first, Muhtar. What do you think?
M
Muhtar Kent15:59
We do have a program, a robust program. 6,000 that we've hired so far. We, and this the year that we're in now, about more than a thousand. Last year was 880. So we do have a program, and it, you know, it's so good for the whole organization. What we've seen is that there's so much positive that comes out of bringing in these veterans, because, and training the veterans and putting them to work on a permanent basis, and also using programs where we employ veterans on a part-time basis, bringing them in and employing them and then giving them the first right for the next round of employment. So very useful. And then linking them to some of the passion points that we have, as I mentioned with Troops, for exercising, improving exercise, improving nutrition. Across many cities we have now programs, again, agreements with at least seven cities in the United States where we're doing this program for troops, for movement and troops for exercise and nutrition.
P
Piers Morgan17:11
John, before you get to your program, I want you to talk about that. There's also this wider issue, isn't there, about an education system that may not be preparing the modern American youth well enough for the jobs that are available. How do you deal with that? And then also tell me about your program of veterans.
J
John Chambers17:28
So the answer, our K through 12 system is broken. All of us as CEOs know that we're not preparing our youth for the jobs of the future. And I think there's no better example than our military. The men and women who have given so much to protect this country and other countries, a million of them are coming back. 18% of the young people under the 24 years of age who come back do not have jobs. That should be something unacceptable in our country. We have to mobilize government and business working together, not just to create 100,000 jobs, but a million jobs for these people. And we've got to think about how do you do programs to prepare them for where the jobs are. General, I've had a chance to talk with a number of your colleagues, also the Army and the Navy and the Air Force does a great job on training young people, but we have to, the last six months of service, train them to be able to get jobs as they come out. The business has to have the courage to say we'll work with you, you give them six months of training, we'll give them six months of training, and we will employ them. And this is where I think the First Lady is right, she's been a tremendous champion on this. I actually was representing high tech at the White House on the topic. But we ought to, instead of saying how do we do 10,000 jobs or 100,000 jobs, how do we get a million jobs? I think this country is capable of doing that. I think it's time for a call of action to do it.
P
Piers Morgan18:41
Chelsea, final... no, please, thank you here. Um, you're the boss. Well, you will be. We're so happy you joined, we're so happy you joined the Clinton Foundation team.
C
Chelsea Clinton18:51
You know, I think this is also where national service, civilian service, can play a role. Um, we were talking about AmeriCorps earlier and the, you know, significant gap that exists today between the demand among young people to serve in a civilian capacity and the current supply that we're providing at the national, state, and local aggregate level. Um, I think, you know, study after study has shown that a civilian service pathway as a transition for our men and women in uniform helps them not only be healthier physically and mentally, but then be more long-term employable and then to be likely to have long-term employment. So that seems just so clear to me that we would truly invest in AmeriCorps and other civilian service opportunities. And you just, as John was saying, he believes we can create a million jobs for our million young men and women who are leaving our ranks of service. You know, during the Great Depression, the Civilian Conservation Corps enabled more than 3 million largely young men to serve our country who otherwise would have been unemployed, and we mobilized that program within three years. And we know that we can do this when we dedicate our time and energy.
J
John Chambers20:05
You know, I was originally a skeptic on the program and the public service approach, but if you look at an unemployment rate of our young people with 15%, if we had a program instead of the individuals having to accept givebacks from the government, saying how don't we apply that business, apply part of it, and get an aggressive goal of a million people back to work. Let's connect their skills and train them to where the jobs are. Let's give them access to new technology such as the internet. And by the way, on the military, what we do very carefully is, if you've ever read a military resume, it's like reading French and German at the same time, you just can't translate it. What we did is say, let's combine, you should help that software become easily available. We just did. So you're the perfect setup. We translate the resume into things that are very applicable for the jobs for the young men and women coming back that match their skills. And our hit rate, General, has been 50% of the job fairs have gotten jobs that day. So this is where business and government must do a better job of working together. It's what the Clinton Global Initiative is all about. But I think this is why our country has to get behind more aggressively.
P
Piers Morgan21:06
I totally agree with you. It's been fascinating talking to you all. Chelsea, a final question for you, just came to me really just in the last few seconds, but do you play board games with your parents, like Scrabble? And if so, who wins?
C
Chelsea Clinton21:17
So we generally are a card-playing family. We do play some board games, which...
P
Piers Morgan21:22
Card games?
C
Chelsea Clinton21:23
Oh, we play Pinochle, Spades, Hearts, all very competitive.
P
Piers Morgan21:27
I would imagine deeply competitive. Who wins?
C
Chelsea Clinton21:28
Thankfully, it's a pretty equal distribution, I think.
P
Piers Morgan21:33
Otherwise... how did I know you'd say that? It's true. Don't tell me you all win 33% of the time in cards.
C
Chelsea Clinton21:39
Probably. In Scrabble, my mother's very good in Scrabble.
P
Piers Morgan21:43
Ah. In Boggle?
C
Chelsea Clinton21:44
My father's probably better.
P
Piers Morgan21:46
Your dad's the best Boggler in the Clinton family.
C
Chelsea Clinton21:48
Probably the best Boggler. My mom's probably the best Scrabbler.
P
Piers Morgan21:52
And you are the best... pretty good at Upwards?
C
Chelsea Clinton21:54
Everyone's equally probably pretty... um, what are you best at? Um, I do really well in the traditional board games, backgammon, checkers.
P
Piers Morgan22:03
Yeah, yeah, interesting. I can talk about this for hours. Sadly, we have run out of time. It's been fantastic to John, Muhtar, and of course especially to Chelsea, who's done two panels, and to the great audience. Thank you all very much indeed.