Diversity

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Diversity
From Coca-Cola’s 2016 Proxy Statement, it is evident that there has been some improvement in the company’s diversity policy and the general composition of the board of directors. The qualifications required for Coca-cola directors are many, but high integrity and a track record of success in their respective fields top the qualifications table. The company’s Board has not adequately defined diversity policy but keenly take into consideration various elements of diversity such as race, age, ethnicity, gender and cultural background in their board membership selection criteria. Coca-Cola believes that diversity is essential since it leads to multiple viewpoints, hence a more comprehensive and practical decision-making process (Kreitner, and Kinicki, 31). A discrimination lawsuit lodged against Coca-cola in 1999 highlighted various diversity challenges experienced by the company. At one point the company’s board was dominated by white men except for one African American male director. There were no women on the board. A glance at the company’s 2016 board of directors indicates that there was an improvement. The board consisted of 27% percent women on gender diversity front and the average age was 65.8 years. The directors had an average tenure of 9.4 years in their respective fields. The 15 member board comprised of 11 male and four female members. Maria Elena Lagomasino was female Hispanic and Alexis M. Herman an African-American female same as Helene D.

Gayle. Ana Botin, on the other hand, was a female Spanish national. This diversified board has had an impact on the company’s performance since their contribution has led to the expansion of Coca-cola brand where there are many additional brands and products in the company’s portfolio. These brands and products have been well received in the global market depicting the company’s understanding of these markets and their unique socio-economic, political and cultural characteristics (Kreitner, and Kinicki, 37). The company’s knowledge of the various market dynamics and characteristics is as a result of a diversified board of directors.
A lawsuit filed in 1999 brought to the limelight the problem black employees faced in Coca-cola Company. The employees were racially discriminated as far as pay and promotions are concerned. Their pay, for example, averaged $26,000 annually which was significantly lower than the average salary for white workers in the same rank. The outcomes of the lawsuit had a significant impact on human resource policies not only in Coca-Cola but other companies. The more than 2000 black workers who worked in Coca-Cola then or in previous years were awarded $40000 cash reward whereas the four plaintiffs were awarded $300,000 each. The federal lawsuit presented by the company’s black employees cost the company a whopping $156 million in settlement and a further $36 million for implementation of corporate and policy changes in the company. The case resulted in a formation of a panel comprising of appointees from Coca-Cola and the plaintiffs’ lawyers whose major role was to oversee the revision of the company’s personnel policies. The panel was to operate for at least four years and had access to Coca-Cola’s employment records. It was charged with the responsibility of improving the company’s practice such as Payment and promotion of minority workers including women.
The company’s positive response to the problem aided in improving its tainted image. The company admitted that there was a problem and it needs to be solved urgently adding that it was better if outside stakeholders were invited to help the company find solutions to human resource policies and other corporate issues that might promote discrimination. Douglas N. Daft who was then the company’s chairman and chief executive invited the proposals arising from the lawsuit admitting that it would have been foolish for them to cut themselves from the outside world. The company’s acceptance of the fact that the problem existed served to dissuade the perception that racial discrimination was part of its corporate culture. Discrimination does not only kill employee morale and creativity but also lessen their commitment to the workplace (Kreitner, and Kinicki, 27). Coca-Cola has taken many corrective measures since discrimination does affect not only employees but also the broader community. The black community which forms the core part of the consumers of the Coca-Cola brands has benefitted from many reforms undertaken by the company.
Work Cited
Kreitner, Robert, and Angelo Kinicki. Organizational Behavior. Mcgraw-Hill/Irwin, 2013.