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Articles by Levick Experts

It recently cost Walgreens Co. some $20 million to obtain a consent decree settlement resolving an Equal Employment Opportunity Commission (EEOC) complaint of racial discrimination. That’s the bad news.

The good news is that an effective communications strategy seems to have cleared the air and protected the familiar retail brand.

Walgreen struck the right chord in its post-settlement statement. “We are pleased to have reached a quick resolution with the EEOC and plaintiffs involved in this case. As a company with zero tolerance for discrimination against any employee, we were disappointed by this lawsuit and are glad to have it behind us.”

Perhaps an even more pointed example involved the Georgia Power Company in 1999. As soon as the ugly act – someone evoked lynching by hanging a noose in the employee locker room – was reported, CEO David Ratcliffe addressed it head on. His position can be paraphrased as follows with our italics added:

“Before I respond to the specific allegations, let me first set forth our company’s values and commitments. We value equal employment opportunities for all and we are committed to diversity and a warm and welcoming work environment. Now, we just learned about this incident. I don’t know if it happened or not. But you know how I feel. You know we’re going to investigate this and deal with it.”

Although several employees filed suit, the case was eventually dismissed. The CEO – who had so artfully enlisted the media as allies by reminding them of what they themselves already knew – reduced press coverage to a one-day story.

By way of contrast, consider the approach Coca-Cola Co. took at around the same time. When several African-American employees filed a complaint with the EEOC – claiming they’d been discriminated against in their performance reviews, salary raises, and opportunities for advancement – the company immediately and categorically denied the allegations. According to several accounts in the news media, the company also attacked the plaintiffs’ character and credibility. The size of the plaintiffs’ class grew and Coke settled the case for $192 million.  

To be sure, these varied examples provide a lesson plan for all organizations caught up in potentially hazardous EEOC situations. In particular:

  • Establish a track record before an incident occurs. On a regular basis, communicate the company’s policies and programs underscoring a culture based on racial and gender sensitivity. Trumpet the core values and announce promotions of minorities and women.
  • When you discover that an EEOC complaint will be or has been filed, resist the instinct to issue a statement denying the allegations and pledging to fight the charges vigorously, at least until you are in full possession of the probable facts.
  • Draft and distribute a statement that reiterates the company’s commitment to a diverse workplace and equal employment opportunity; highlights the specific policies empowering that commitment; specifies the procedures in place to monitor and maintain compliance; and enumerates the steps that are in place for researching and resolving complaints.
  • Promise to research the current complaint – and, of course, keep that promise. State that you will work closely with the EEOC or any other authorities with an interest in the matter.
  • Highlight any evidence of a strong performance by the company in the equal employment arena.
  • Identify minority and/or women board members who can speak to the company’s commitment and to the effectiveness of its policy and procedures. Identify strategic media outlets and consider offering them interviews with those board members or executives.
  • Identify minorities and/or women employees who have succeeded at the company, who are highly satisfied with their jobs, and who are willing to talk to the media if the need arises. Work with them to develop their statements and prepare them with Q&As for press interviews.

Once you discover the charges are false, it is then appropriate to come forward and say: “We have looked closely at the complaints and found them to be baseless allegations. We vow to defend ourselves.” Even then, do not attack the plaintiffs.

In all EEOC matters, stick to the facts and always travel the high road.

 
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