THE COCA-COLA COMPANY | Racial Justice Scorecard results at THE COCA-COLA COMPANY

Status
Filed
Previous AGM date
Resolution details
Company ticker
KO
Lead filer
As You Sow
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
United States
Resolved clause
Shareholders request that Coca-Cola issue a public report, at reasonable cost and omitting proprietary information, on the extent of the Company’s current diversity, equity, and inclusion efforts.
Whereas clause
Equity-based policies and programs that promote diversity, equity and inclusion (DEI) strengthen workforce effectiveness and corporate performance. Evidence shows that transparent disclosure of diversity policies and quantitative outcomes mitigates material risk to brand value and financial performance:

Companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax.[1]

Organizations that lead with inclusion are eight times more likely to have better business outcomes.” [2]

80% of workers prefer to work for a company that values DEI.[3]

A recent study of EEO-1 forms found a “positive association between diverse representation in management and positive financial performance.”[4]

Coca-Cola Co. is lagging behind peers on diversity and inclusion disclosure. Coca-Cola earned a 13% score on As You Sow’s Racial Justice Scorecard, compared with PepsiCo’s 21% and Starbucks’s 27%.[5] The Company’s low score reflects minimal transparency on workforce data and diversity-related policies and practices.

Coca-Cola's 2024 Annual Report states that “we strive to cultivate diversity in our workforce and believe teammates with different backgrounds, experiences and viewpoints bring value to our organization.[6]

Despite the company’s public statement about its willingness to cultivate diversity, the company’s weak diversity and inclusion disclosures reduce clarity on whether our company actually attracts and retains diverse talent critical to long-term success. The company can demonstrate ongoing success and performance in this area by increasing transparency around its diversity and inclusion policies and practices. The failure to disclose this information raises material and unacknowledged risk of reduced brand value and financial performance.

[1] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/delivering-through-diversity

[2] https://www.ceoaction.com/purpose/

[3] https://www.cnbc.com/2021/04/30/diversity-equity-and-inclusion-are-important-to-workers-survey-shows.html

[4] https://www.asyousow.org/report-page/workplace-diversity-and-financial-performance

[5] https://www.asyousow.org/reports/racial-justice-june2024

[6] https://investor.cokeconsolidated.com/static-files/57814901-7685-4e3c-851f-63f56335da7f, p.22

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