Reserch and Analysis

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 effort)

$1,200,000 United Negro College Fund (Atlanta Coke bottler)

$1,500,000 Diversity Leadership Academy (Atlanta)

$60,000,000 Minority Suppliers and Contractors

$ unknown Minority Suppliers and Contractors Mentoring Program

$50,000,000 Minority "Partners Ventures" in selected minority communities

$115,000,000 Coke pension funds to be managed by financial firms which are not owned by white males

$50,000,000 Miscellaneous minority activism and minority non-profits

$475,200,000 Grand Total "Real" Coke Settlement

We require that our people act with honesty and integrity in all business matters. Our expectations are clearly defined in our Code of Business Conduct (The "Code") and are underpinned by our core values. In 2005, The company made several changes that may have included efforts to prevent similar lawsuits, but also to strengthen its company values. One such change was the establishment of the Compliance Committee. This cross-functional, senior management team is responsible for overseeing our ethics and compliance programs, administering the Code and determining Code violations and discipline. Discipline ranges from letters of reprimand to termination. The Audit Committee of the Board of Directors regularly reviews all ongoing Code investigations and resolutions. In 2005, we also established EthicsLine. This new global Web and telephone information and reporting service is administered by an independent third party. Our people, bottling partners, suppliers, customers and consumers can report concerns confidentially (anonymously if they prefer), ask questions and follow up on reports. The service is toll-free; available 24 hours a day, seven days a week; and translators are available.

(C) outcomes of the company’s response to the situation

The Company remains a leader in the industry They are No. 1 in global sales of carbonated soft drinks and four of the top-five soft drinks are ours: Coca-Cola, Diet Coke, Sprite and Fanta. What many people don’t know is that we are No. 1 in global sales of juice and juice drinks, No. 2 in sports drinks and No. 3 in bottled water.

A) the situation facing the company

A discrimination lawsuit documents Cintas employees’ complaints that the company discriminates