Case Study Of Shoney's Inc.

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In 1989, employees and applicants filed a class-action lawsuit against Shoney’s Incorporated for racial discrimination in hiring, promotion, discharge, and discriminatory behavior towards them while on the job (University of Michigan Law School, n.d.). The plaintiffs, a mix of African-Americans and Caucasians, charged that the Shoney’s used “intimidation tactics” (University of Michigan Law School, n.d.) to either not hire African-American applicants, or assign them to kitchen positions where they would not interact with customers, the dismissal of black employees because there were “too many” in a particular store (Smothers, 1993), as well as the dismissal of white managers for not following discriminatory instructions or discriminate against …show more content…
They also launched an extensive affirmative-action program to increase African-American representation within its workforce and to diversify its recruitment strategies (Dougal, 1998). It seems that Shoney’s overhaul did help the organization achieve a higher level of equality within its organization. In 1997, African-American representation in management positions increased from 14.5% to 21%; additionally, their representation in the workforce as a whole increased from 28% to 35% (University of Michigan Law School, n.d.). In 1998, Shoney’s was listed as #13 on FORTUNE’s list for the best employers of minorities (Faircloth, 1998). However, it’s rating dropped to #36 in FORTUNE’s 2000 list and they have subsequently fallen off the list altogether (University of Michigan Law School, n.d.). This is not to say they no longer value diversity within their workforce; however, they are no longer taking prolific steps to demonstrate this value, as compared to other highly ranked organizations, and are no longer recognized for their diversity.
Name one diversity law or piece of legislation. How effective has this legislation been at eliminating discrimination from the
…show more content…
In some cases, these employees pursue legal recourse for the discrimination they have faced. In 1999, Coca-Cola faced a class-action lawsuit for racial discrimination. In response, Coca-Cola paid out a hefty financial penalty in addition to a sweeping overhaul of its employment policies and practices. Due to its efforts, Coca-Cola is currently rated very well, by multiple organizations, for its workplace diversity and inclusion. In 1989, Shoney’s also faced a class-action lawsuit for racial discrimination. Shoney’s was required to pay out large financial sums in addition to drastic changes to their employment practices. While Shoney’s was noticed for its diversity initiatives in the years following the litigation, it has since fallen off the diversity radar, indicating that it is no longer recognized as a leader on the diversity front. In 1964, Congress passed the Civil Rights Act, including Title VII of the act, which prohibited discriminatory employment practices for a number of protected classes. While this legislation has helped to curb overt discrimination within the workforce, employees still face subtle discrimination in the form of negative stereotypes and biases. The second most filed claim with Equal Employment Opportunity Commission involves racial discrimination, demonstrating that this is still a major issue for many employees. Until there

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