In 1999, Coca-Cola Company was served with a lawsuit to allege that the company employed racially discriminatory business practice. The suit alleged that there is a substantial difference between black employees and white employees in pay. In addition, a glass ceiling in the company kept black employees from advancing upward into level of management positions.
Assumptions
According to the company report in 2009, Coca-Cola is the biggest producer of sparkling beverage. Even though Coca-Cola is the world’s most famous brand name, the company is also known for the largest lawsuit related to racial discrimination in The United Stated history.
During the war world II, in order to serve Coke to American Soldiers in North Africa …show more content…
As it is essential to understand the important of diversity management in the global market, the company should have focused on their business model about how to treat their employees to make improvement in order to prevent the lawsuit. According to Bolman, G., and Deal, E. (2008) the company human resource practice is considered as the biggest problem of Coca-Cola. Although there were many jobs title, there was no consistent form of job posting and promotional practice, which could prevent their employees to compete for higher-level positions fairly. In addition, the Coca-Cola focused only on high volume of growth, which made its market share and financial return increased. Although the company became best know brand in the world, the organization culture was insular and caused the problem of failure in managing …show more content…
To illustrate, there are many warning signs that were ignored by the company such as the visit of the Rev. Joseph Wheeler, president of the local NAACP, the report that caused the demotion of Ware, etc. When Coca-Cola didn’t recognize the need for change, employees felt that they couldn’t recourse to the company and filed the lawsuit. As the result of losing the lawsuit, the company made the progress in its diversity management with the recommendation of the Task Force; however, they recognized they need more time to implement the changes. After that, applying the new ways to its operating system. At the Coca-Cola, diversity is now considered as one of seven core values and they are trying to make their employees as inclusive as their brand name (Harvey, P., & Allard, J.,