Cultural Change at Texaco

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."

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 the diversity issues at Texaco, Inc. requires communication and the adoption of an awareness that states the success of the company stands on the basis of valuing its employees.

The human resources policies and procedures should be revised to reflect the need for diversity training and education:

Texaco will create an analysis of the company's strengths and weaknesses. Note the behaviors that contributed to the diversity issue.

Form a committee to include key personnel and employees from different levels throughout the company. Assign the committee to develop goals for interviewing, educating and enhancing the quality of recruiting and maintaining a high-level of quality employees. The committee should consider methods to display the company in a positive light and send a strong message to its employees and the community that Texaco is committed to diversity.

Promote cultural programs and activities that will allow employees insight and an appreciation for cultural differences. Incorporate mentoring programs, reach out to community organizations. Launch programs to recruit and offer internships for minorities from college and university programs. Meet with organizations that advocate for equal treatment of minorities to gain their support, yet inform them of the no tolerance efforts.

Develop a mandatory training plan to train key personnel and employees. The training program should include in addition to diversity training, a revaluation of the company's ethic policies. Set a schedule of required classes for employees to complete and test on a yearly basis.

Increase vendor relationships. Invite minority firms to bid and submit proposals on projects. Support minority businesses in obtaining financing for franchise opportunities.

Devise standards to hold key personnel and employees accountable. Request that key personnel document their efforts to increase awareness and measures to enforce change within each department. Ask that each employee include in his or her yearly evaluation, goals to enforce diversity practices in the workplace.

Create a task force to monitor the progress of Texaco's commitment and require feedback from employees and key personnel. Set up a confidential service for employees that will enable them to voice their concerns or complaints. Provide a dispute-resolution process. Receiving feedback will be instrumental in enforcing the goals.

The diversity plan will not result in instant gratification. Often change can bring about fear. This plan will require management to serve as role models to employees, displaying respect, a positive attitude and just behavior. It will demand that management acquire the skill to guide and motivate employees, encourage them to be innovative and driven, and to share in the enthusiasm of the company's vision and mission.