Problem
Coca-Cola, the beverage company, wants to energize its diversity efforts. Over 20 years ago the company agreed to pay over $190 million dollars to settle a race discrimination lawsuit. In 2000 Coke made changes to its hiring, promotion, and pay practices to create a fair, equitable, and nondiscriminatory workplace. Ten years later, in 2010, Black employees held 15% of executive positions in the U.S. compared to less than 2% before the lawsuit. However, in 2020, Blacks only held 8% of executive positions. Many at Coca-Cola believe that the loss of Black representation in executive positions is because the company diversity efforts expanded to include gender and other races and underrepresented groups. There was also a change in the way the company reported diversity numbers. For example, Coke stopped disclosing data by race but instead provided the percentage of multicultural employees which included employees who were not white or non-Hispanic. A company restructuring in 2017 led to a sharp decline in available Black talent, who were recruited by other companies. Additionally, Black professionals left the company company because they felt their advancement was too slow or they had limited influence. Also, Coke stopped linking executive pay to increasing diversity. Coke's hiring efforts contributed to the growth of a more diverse workforce including Black professionals but many did not find the culture welcoming or receive coaching and support necessary to develop a professional network within the company. Coke still does better than other companies in the representation of Blacks in executive and senior management positions. At competitor PepsiCo Inc., 6.3% of U.S. executives are Black. Among all companies Black employees hold less than 4% of executive and senior manager roles.
Task
• How can Coke use development to increase the representation of Black professionals and executives in the company? Provide recommendations for development activities and a rationale for why they should be considered.
• How would you determine the progress and success of the development activities you propose?