Coca-Cola Monday announced they will not implement the controversial diversity requirements for external law firms working for the company following a backlash from their investors.

The policy introduced in January 2021, set out that outside counsels would have to have 30% of their employees from diverse backgrounds, and half the billable time going to black lawyers specifically. The requirements were announced by formal general counsel Bradley Gaton. Before stepping down from his position as legal chief, Gayton justified the drastic measures to attempt to address the legal sectors disparities facing black lawyers and other lawyers from diverse backgrounds.

However, the policy was met with backlash from shareholders who threatened legal action, with the American Civil Rights Project (ACRP) labeling the requirements as “woke” and breaching section 42 of the USC 1981, prohibiting illegal race discrimination.  Group executive, Daniel Morenoff called the decision “amazing” that no consideration had been given to the infringement on American Civil Rights law.

It has since been understood by Monica Howard Douglas, an in-house lawyer for Coco-Cola and now general counsel that the guidelines were never implemented in response to threats of lawsuits from shareholders. The company website that has since removed the controversial guidelines will continue its 2030 equality plan and rethink promoting diversity internally and externally, with a focus on a workforce that mirrors the market they serve.