A) the situation facing the company
This unprecedented case of racial discrimination has resulted in Coca Cola paying $500 million dollars or more to silence racial activists and to keep Coke sales among minorities up. Four African-American employees of Coca Cola filed a racial discrimination lawsuit based on unsubstantiated charges that Coke (a) underpaid them because they are black; and (b) created a hostile work environment. Despite the discrimination lawsuit against Coca Cola, is committed to sound principles of corporate governance.
The Board is elected by the shareowners to oversee their interest in the long-term health and the overall success of the business and its financial strength. The Board serves as the ultimate decision making body of the Company, except for those matters reserved to or shared with the shareowners. The Board selects and oversees the members of senior management, who are charged by the Board with conducting the business of the Company.
The Corporate Governance Guidelines, along with the Charters of the each of the Board Committees and the key practices of the Board provide the framework for corporate governance at The Coca-Cola Company. The Board has seven committees: Audit; Compensation; Directors and Corporate Governance; Executive; Finance; Management Development; and Public Issues and Diversity Review
B) how the company responded to the issue
The Company reached an out of court settlement that totaled $475,200,000. The specifics of the settlement is outlined below.
$192,500,000 "Official" settlement (punitive and compensatory, even though the case was never tried in a court of law).
$5,000,000 United Negro College Fund (national effor ...