Cultural Change at Texaco Term Paper

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Texaco, Inc. Case

Texaco, Inc. is a multi-billion dollar corporation that produces petroleum, oil, gasoline and asphalt. Founded in 1901, Texaco's growth expanded into the automobile industry in the 20th century, at which time the company focused on international production and marketing.

Ethics, the morals, values and beliefs of person has become a conflict in the workplace because it has been ignored. When those values take a back seat to the betterment of an organization, the lack of respect, greed and stereotypical attitudes present an unhealthy work environment.

In 1996, while in the midst of expanding its conglomerate, Texaco confronted with negative publicity, addressed the issue that shed a negative image on the company. As a result of racist comments and behavior conducted by its employees and management, Texaco became involved in a lawsuit that settled in the amount of $175 million. This is noted as the largest settlement of this magnitude.

This paper will examine the strategies developed by Texaco to put diversity at the forefront of its corporation, their tactics, and a plan of action to incorporate best practices.

African-American's employees complained of the discriminatory behavior practiced at Texaco. Documents revealed records of minority employee low wages, employees witnessed derogatory remarks made to an African-American woman, and there were taped conversations of the pending lawsuit that implying racial names and disposal of evidence. The tapes were made public and available to the New York Times.

The Anti-Defamation League (ADL) expressed concern over the racism allegations against Texaco. In a meeting held November 26, 1996, between ADL and Texaco, Bijur announced that Texaco would no longer tolerate racism or anti-Semitism. He stated "while Texaco cannot guarantee a change in attitudes of its individual employees, it can ensure that inappropriate behavior will not be tolerated from anyone in the Texaco Corporation.

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Bijur devised a strategy to implement diversity in the company. He set milestones to establish goals, and carry out 'Best Practice' policies. He hired and placed African-Americans in key positions; director of global business development, general counsel, and as head of diversity. Women and minorities participated on human resources committee, and search firms were consulted to assist with recruiting efforts. Diversity training became mandatory for all employees, formal mentor and leadership programs were implemented. A task force was created to monitor the company's progress.

The relationship between the employees and management shifted during the transition period. Bijur contended to the top executives and managers that their success with the company would be a result of executing the diversity plans. He announced to management that they would be held accountable and subjected to evaluations, to include the diversity plan. This created a consciousness among the employees and management.

Diversity is among many issues facing the United States. According to Angyla B. Bell, "Many times the mere mention of cultural diversity is received as being an obligation to human rights protection or some form of compliance to legal requirements." As a result of the settlement, Texaco, Inc. The court ordered to take the issue seriously, and put a motion in place to rectify the issue. Education systems are set up to teach children the value of respect, honesty and fair treatment toward one another. As they advance through life, the values are lost with greed and ambition, losing sight of what makes a company successful, the people.

Incorporating diversity requires strong leadership, which Bijur presents. Under his direction, Bijur incorporated a diversity plan that showcased the company's commitment to change, not out of obligation, but for the benefit of the company. In an effort to resolve the issues that surrounds.....

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