Coca-Cola will suspend advertising on social media globally for at least 30 days, while pressure builds on platforms to quell the hate speech.
"There is no place for racism in the world and there is no place for racism on social media," said beverage maker James Quincey president and CEO.
He called for "greater accountability and transparency" to social media companies.
It came after Facebook said it would label potentially harmful or misleading posts left for their news worth.
Founder Mark Zuckerberg said Facebook would also ban advertisements containing claims that "people of a specific race, ethnicity, national background, religious background, caste, sexual orientation, gender identity or immigration status" are a threat to others.
The organizers of the #StopHateforProfit campaign, which accuses Facebook of not doing enough to stop hate speech and disinformation, said that the "small number of small changes" won't "dent the problem."
More than 90 companies have paused advertising in support of #StopHateforProfit.
Following the boycott, Facebook shares fell 8.3% on Friday, removing $ 56 billion (£ 45 billion) from the company's market value and throwing $ 7.2 billion into Zuckerberg's personal net worth, according to as reported by Bloomberg. Due to the loss, Louis Vuitton boss Bernard Arnault replaced Facebook founder as the third richest individual in the world.
Coca-Cola told CNBC that its advertising suspension does not mean that it will join the campaign, despite being listed as a "participating firm".
Quincey said the company will use the global "social media platform break" to "reevaluate our advertising policies to determine if reviews are needed."
Levi Strauss & Co, a clothing manufacturer, also said that it would pause advertising on Facebook after Mr Zuckerberg's announcement. Unlike Coca-Cola, he accused the social media company of not going far enough.
"We ask Facebook to commit to a decisive change," said Jen Say of the CMO.
"We want to see significant progress towards the end of the amplification of disinformation and hate speech and a better targeting of the advertisements and political content that contribute to the suppression of voters. While we appreciate that Facebook has announced some steps in this direction today, it simply does not it's enough".
The #StopHateforProfit coalition - which includes the National Association for the Advancement of Colored People (NAACP) and the Anti-Defamation League (ADL) - said that none of the changes would be verified or verified.
"We have already followed this path with Facebook. In the past they have apologized. They have taken little steps after each catastrophe in which their platform played a role. But this must end now," he added.
The campaign invited Zuckerberg to take further steps, including the creation of permanent civil rights infrastructure within his company; undergo independent identity-based hate and misinformation audits; find and remove public and private groups that publish such content; and create teams of experts to review complaints.
