Apart from COVID19, last year was marked by the Black Lives Matter riots.
Consequently, major retailers and large brands including Coca Cola decided to implement updated diversity policies.
According to the statement made by the US outside counsel officials on January 28, Coca-Cola won’t do business with law firms that don’t meet the “black attorney quota”.
Looking into the details of it, the company requires that at least 15% of the billed time is provided by black attornies.
The main issue with this?
Such percentage is higher than that of the whole Afro-American community percentage in the US population!
The Details of the Coca Cola Diversity Policy
The representatives of the food and beverages giant introduced their diversity policy more than a month ago.
The main requirement imposed by Coca-Cola is that of the total billed time at least 30% should be from people of color.
Accordingly, at least half of that number should come from black attornies.
Furthermore, this policy isn’t only applied to the law firms that Coca-Cola is yet to make deals with, but also to the agencies that they do business with.
Thus, those entities will be given a time period during which they should implement and adapt to the updated diversity policy.
Besides that, the outside counsel representatives suggested that this is just the beginning and that the soft-drink magnate will increase the quota to 50%/25% in the near future.
What Does the American Bar Association Report?
As we have mentioned above, the percentage of the Afro-American population is lower than 15% - to be more precise, it is set at 13%.
With that in mind, it will pretty tough for the law firms to adopt this policy especially considering that just 5% of attornies are black.
This is something that American Bar Association reported on last year and things didn’t change since.
And what about businesses already doing business with Coca-Cola?
Well, in case they don’t accept or successfully comply with this policy in 6 months from now their compensation will be cut by 30%.
Furthermore, although Coca-Cola suggests that this diversity policy is going to yield much better results than their previous acts, that is unlikely to happen.
The main reason is that there simply aren’t enough attornies that are of color/black and that work in law firms that are interested to represent Coca-Cola.
On the other hand, we doubt that the company will reconsider its policy as American Bar Association isn’t interested in questioning its practice.