Eli Lilly: Managing Workplace Diversity and Coping with the Accusations of Racial Discrimination


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Case Details:

Case Code : HROB105
Case Length : 20 Pages
Period : 2006-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Eli Lilly & Company
Industry : Pharmaceutical
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Lilly was founded by Colonel Eli Lilly (Col. Lilly), a pharmacist and a veteran of the American Civil War. In 1876, Col. Lilly began the business by opening a small laboratory in Indianapolis, Indiana, USA, and manufacturing pharmaceutical products. The business ran successfully under the innovative process adopted for making gelatin-coated pills.

In 1886, Col. Lilly hired Ernest Eberhardt to work at Lilly and together they laid the foundation for the company (Refer to Exhibit II for the mission, vision, and core values at Lilly). After Col. Lilly's death in 1898, his son, Josiah K. Lilly Sr. (Josiah) took charge of the company. In 1907, Josiah's elder son, Eli Lilly joined the company...

Managing Workplace Diversity at Lilly

Analysts felt that Lilly had made a name for itself as a good potential employer globally. In addition to a compensation package that ranked among the best in the industry, the company also took care of the training and development of the employees and provided them with various benefits (Refer to Exhibit IV for the various benefits offered at Lilly)...

Welch et al vs. Eli Lilly & Company

On April 20, 2006, a class action lawsuit was filed with the US District Court, Southern District of Indiana, by four black employees who had worked at Lilly. The lawsuit charged the company with being hostile and biased against them because of their race.

Lilly was accused of discriminating against the black employees on the basis of race and denying them fair wages, promotions, and performance evaluations (Refer to Box I for the plaintiffs'allegations against Lilly)...

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