Coca Cola And Its Effects On Its Policies Essay

Coca Cola And Its Effects On Its Policies Essay

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The Coca-Cola Company article describes what occurred to Coca-Cola back in 1999, when due to a lack of effective diversity leadership, the world’s first producer of sparkling beverages lost the largest discrimination lawsuit in the United States history. In the lawsuit, the company was accused of systemically discriminating against black employees in promotions, evaluations, terminations, and pay. The case begun with four employees accusing the company, and then the suit became a major one by having approximately 2000 plaintiffs. The plaintiffs asked for monetary damages and court required the company to modify some of its employment methodologies. The company denied such charges, but after continual mistakes of Top Management, and due to the objective evidence that demonstrated such discriminations, in 2000, a court ordered mediation, where Coca-Cola settled the lawsuit with almost all of the 2,200 plaintiffs for $192.5 million. On June 7, 2002, the U.S. District court for the Northern District of Georgia approved the settlement Agreement. After the lawsuit, Coca-Cola implemented numerous systemic changes in its policies and procedures. Improvement in the perception of minority employees, diversification of the board of directors, implementation of mandatory diversity training for managers and employees, uniformed compensation system based on job-related measures, establish a mentoring program, and many other actions were the immediate results after the lawsuit.
The soft drink industry begun in the 1800s, and became a highly profitable one, including tea, coffee, sport and juice drinks. However, the consumption of soda declined while the one for other bottled beverages increased. Facing this problem, the Coca-Cola Company starte...

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...he big difference these days is that we do have diverse workforce in most of the advanced economies, and even more in the U.S., and in first half of the 1900s, was not that way. It was very diverse for Coca-Cola because had many plants in many countries around the world. Today, we can find in a Coca-Cola plant in the U.S. White, Black, Hispanic, Asian, and other race employees in the same facility, and from different gender, at all levels of the organization, and with different cultural and religious beliefs.
Coca-Cola learned the lesson after the lawsuit. The company understood that they needed to operate in the real world and not in the one they wanted. That they have a major social responsibility as well, because many young people follow their campaigns, and are part of its customer base, and those followers and customer are definitely part of this diverse world.

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