cocacola racial

discrimination

Presentation by Sailesh Shrestha

 table of contents

01 Background of company

02 Legal issue

Court decision & legal analysis

03

04 settlement
 Background of
01 company
 Background of the company
● American corporation that was established in
1892
● currently focused on the production and
distribution of syrup and concentrate for
Coca-Cola, a sweetened carbonated beverage
that is a cultural icon in the country and a
representation of American tastes around the
world.
● largest beverage manufacturer and
distributor in the world and one of the largest
corporations in the United States, with more
than 2,800 products available in more than
200 countries.
● Atlanta, Georgia serves as the headquarters.
 02
Legal issue
 legal issue
● African-American employees of Coca-Cola in the US launched a class action
lawsuit against the company in 1999
● According to the plaintiffs, racial discrimination led to lower compensation,
fewer promotions, and worse performance reviews.
● Coca-Cola reached the largest corporate racial discrimination settlement ever
in 2000
● According to the data they presented, African American employees at the
corporation made a median income that was nearly one-third less than that
of white employees.
● Contrary to their significant representation among all salaried employees, the
company had few African-Americans who had advanced to senior levels
 Racial discrimination
indirect
Direct discrimination discrimination

harrasement victimization
 Racial discrimination
Direct discrimination
When someone treats you less favorably than another person in a
comparable circumstance just because of your race, this occurs.

indirect discrimination
This occurs when a company has a particular policy or method
of operation that disadvantages members of your ethnic
group
If the company or organization can demonstrate that there is a
valid reason for the discrimination, then it may be possible to
engage in indirect racial discrimination.
 Racial discrimination contd…
harassment

When someone makes you feel

embarrassed, outraged, or degraded, that
is harassment.
For instance: At work, a young Asian victimization
British man is frequently called a
derogatory epithet by coworkers.
When you file an Equality Act complaint alleging
racial discrimination, you may experience
unpleasant treatment as a result.
It may also happen if you are standing by someone
who has reported racial discrimination.
 Equality act

According to the Equality Act of 2010, racial discrimination is prohibited.

Race under the Equality Act might refer to your nationality or your color (including your
citizenship).
The term "race" also refers to ethnic and racial groupings.

This refers to a group of individuals who are all of the same protected ethnicity or racial
background.
 03
court decision & legal analysis
 court decision & legal analysis
● In a complaint filed in April 1999, Coke was charged with creating a corporate hierarchy where black
employees were paid, on average, $26,000 less per year than white employees at the bottom of the
pay range.

● The settlement offers up to 2,000 current and former black salaried workers reparation in the form of
cash payments averaging $40,000, while the four plaintiffs named in the action would get up to
$300,000 each.

● Even the most enthusiastic case observers were surprised by the settlement's limited capacity to
change the company's personnel policy, which is perhaps more unexpected than its magnitude.

● The panel will serve as a watchdog for at least four years and will have access to the company's
personnel data.

● Coke officials and plaintiffs' attorneys described the settlement as a "business necessity" despite the
short-term costs, which are negligible for a company with about $20 billion in sales last year.

● On behalf of four black Coke employees, Johnnie L. Cochran Jr. and Willie E. Gary, a Florida attorney
who focuses on personal injury cases, filed a $1.5 billion lawsuit in a Georgia state court in June.
 court decision & legal analysis
● The Coke lawsuit serves as an example of how the conflict over race in American workplaces has
changed.

● However, several Coke executives said in interviews that since the business had been so focused on
raising its share price, employees had been the victims of "benign neglect."

● A group of black executives led by Mr. Ware complained to M. Douglas Ivester, the president of Coke at
the time, in 1995 about the absence of blacks in senior management and the culture in which they
frequently felt "humiliated, neglected, disregarded, or unappreciated."

● Other employees, especially those at the bottom of the corporate food chain, paint a picture of a
workplace that is so toxic that black Coke employees still have disproportionately high rates of stress-
related disorders like depression.

● Many black workers claim that after complaining about these conditions, management vilified them,
spied on them, or just dismissed them.

● After conducting an investigation, the Labor Department determined that Coke had broken federal
anti-discrimination statutes and ordered the business to change its methods.
04
settlement
 Settlement
● In this case, the parties came to a settlement that was ultimately accepted by the
court in June 2001.
● The nation's largest racial employment discrimination class action settlement in
history was a $192 million agreement.
● In addition to financial compensation, the settlement mandated that Coca-Cola lead
the Fortune 500 in fair employment practices.
● The task of ensuring that this diversity goal was accomplished was delegated to a
court-appointed Task Force, which was presided over by Alexis Herman, a former
Clinton Labor Secretary.
● Judge Story, who presided, praised M&S's efforts, saying that "as a judge, there's no
greater joy than the opportunity to be involved in litigation with excellent,
professional class counsel."
 Thanks!
Do you have any question?

CREDITS: This presentation template was created by Slidesgo, and

includes icons by Flaticon, and infographics & images by Freepik