WHAT HAPPENED AT COCA-COLA

1. WHAT HAPPENED AT COCA-COLA PUBLIC IMAGE COMPANY CULTURE EXTERNAL INTERVENTION NEW CULTURE AND PRACTICES

2. DIVERSITY MIND SET PRIOR TO DAFT • PROJECT A POSITIVE DIVERSITY IMAGE • MINORITIES IN THE ADS • SUPPORT HUMAN RIGHTS GROUPS • PARTIALLY FUND THE RAINBOW COALITION

3. MARKET NECESSITIES • INCREASINGLY DIVERSE PRODUCT MARKETS • INCREASINGLY DIVERSE LABOR MARKETS -SELL IN MORE THAN 200 COUNTRIES -SOFT DRINK OF CHOICE IN THE SOUTH -POPULAR SOFT DRINK IN GENERAL FOR AFRICAN AMERICANS

4. PRODUCT MARKET DIVERSITY -SELL COCA-COLA IN MORE THAN 200 COUNTRIES -SOFT DRINK OF CHOICE IN THE SOUTH -POPULAR SOFT DRINK IN GENERAL FOR AFRICAN AMERICANS -NEW PRODUCT LINES REQUIRE NEW MARKETS -INCRESES THE PRESSURES TO RESPON TO MORE DIVERSE MARKETS

5. DIVERSITY IN THE LABOR MARKETS • HQ IN ATLANTA • LABOR POOL 28% BLACK • A LOT OF THE LABOR EMPLOYED BY THE BOTTLERS ARE BLACK • A LOT OF THE FIRST AND SECOND TIER SUPPLIERS ARE BLACK OWNED • A LOT OF THE SUPPLIERS EMPLOY A LOT OF BLACK EE’S • MANY BLACK COLLEGE GRADUATES, SOME FROM PREDOMINANTLY BLACK COLLEGES

6. COMPANY CULTURE • DOMINATED BY FINANCE AND ACCOUNTING • INSULAR AND INBRED IN THE HIGHER MANAGEMENT • CHAOTIC AND ARBITRARY HUMAN RESOURCES MANAGEMENT • LATENT RACIST CULTURE • BIASED PERFORMANCE MANAGEMENT • COMPENSATION DISCRIMINATION • UNEVEN RETENTION RATES • INSENSITIVE AND CONDECENDING AND ARROGANT ATTITUDES TOWARDS OUTSIDE STAKEHOLDERS • GENERAL INTOLERANCE FOR DIFFERENCES OF ANY KIND

7. EEOC/TITLE VII COMPLIANCE • VIOLATIONS IN HIRINGS • VIOLATIONS IN JOB POSTING, PROMOTION APPLICATION PROCESSES • VIOLATIONS IN PERFORMANCE APPRAISALS • VIOLATIONS IN ACTUAL PROMOTIONS • DISCRIMINATORY COMPENSATION PRACTICES • HARRASSMENT OF BLACK EMPLOYEES

8. SIGNS OF DANGER • BLACK SALESMEN TERRORIZED BY BOTTLERS • SEVERAL PRESENTATIONS TO TOP MGT; ALL IGNORED • REV. WHEELER, PRES. OF NAACP, WAS NOT LISTENED TO • A BOYCOTT WAS AVOIDED AT THE LAST MINUTE

9. LAWSUIT • STARTS AS 4 EE SUIT • COMPANY REACTS UNCOOPERATIVELY • BECOMES CLASS ACTION; 2000 PLAINTIFFS • EE’S REPRESENTED BY MEHRI (WON 176 MIL SUIT AGAINST TEXACO)

10. PLAINTIFF CLAIMS • COCA-COLA SYSTEMATICALLY DISCRIMINATED AGAINST BLACKS • PAID THEM LOWER SALARIES FOR THE SAME WORK • PASS THEM OVER FOR PROMOTIONS • SUBJECT THEM TO HARRASSMENT

11. COMPANY RESPONSE • VIGOROUS PRE-TRIAL DEFENSE • TOTAL DENIAL OF WELL DOCUMENTED DISCRIMINATION WITH VERY LITTLE OR NO DOCUMENTATION • DENY CLASS ACTION STATUS OF THE LAWSUIT • DID NOT COMPLY W/ COURT ORDER FOR NON RETALIATION STATEMENT • PUT IN CHARGE WARE, AND THEN DEMOTE HIM WHILE THE CASE WAS PENDING • WARE RETIRES

12. ENTER DAFT • 30 YR VETERAN • IN CHARGE IF LARGE FOREIGN MARKETS • WANTS TO MAKE COKE A MODEL CITIZEN • WANTS COKE TO BE TOP OF THE CLASS IN DIVERSITY MANAGEMENT • REAPPOINTS WARE AS VP OF GLOBAL PR • EXPECTS CLEAR SUPPORT FOR DIVERSITY FROM EXECS • TIES COMPENSATION TO DIVERSITY GOALS • SETTLES THE LAW SUIT

13. SETTLEMENT AGREEMENT • APPLIES TO ALL NON-HOURLY US EE’S • BACK PAY TO CURRENT AND FORMER EE’S • FUTURE PAY EQUITY ADJUSTMENTS • TIE EXEC BONUS TO DIVERSITY PERFORMANCE • CREATES AN EXTERNAL TASK FORCE TO MONITOR AND EVALUATE PROGRESS • INCLUDING THE MINORITY EVALUATIONS OF COMPANY INTERNAL CLIMATE (HARRASSMENT ISSUE) PRICE TAG: $200 MILLION

14. TASK FORCE • LED BY ALEXIS HERMAN • 7 MEMBERS, ALL OUTSIDE • ASKED TO SUBMIT 4 PROGRESS REPORTS • FIRST REPORT: • MINORITY PROMOTIONS TO SENIOR MGT STILL LAGGING • MINORITY PERCEPTIONS FOR EQUITABLE ADVANCEMENT OPPORTUNITY STILL PROBLEMATIC