canas_oacowd2_05B
Download
Report
Transcript canas_oacowd2_05B
Texaco, Inc.
A Racial Discrimination Suit
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-1
The Situation
• Peter Bijur, Texaco CEO.
• Roberts v. Texaco, Inc.
Pending lawsuit from 1994.
$520 million filed by six employees on
behalf of almost 1,500 other minority
workers.
Texaco “fostered a racially hostile
environment.”
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-2
Background
• Texaco: #11 on the Fortune 500 list.
• More than 27,000 employees
•
•
worldwide.
Ranked third behind Exxon and Mobil in
the petroleum industry.
$45 billion in revenues in 1996.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-3
Background
• On ABC’s Nightline, Bijur offered the
following:
16.6% of its U.S. work force of 27,426
employees were minorities in 1991.
In June of 1996, 22.3% of its 19,554
employees were minorities.
Of those, minorities in management
positions were at 6.8% in 1989 and 9.5% in
1994.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-4
Background
• In 1996:
EEOC found that black workers seeking
promotion were chosen “at rates
significantly below those of their non-black
counterparts.”
The U.S. Department of Labor found that it
took minorities up to twice as long as white
workers to win promotions.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-5
The Meeting
• Meeting participants - August 1994.
• Alleged racial epithets:
Statement characterizing African
Americans in unflattering terms.
“You know how black jelly beans agree.”
References to National Anthem incident.
References to Hanukkah & Kwanzaa.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-6
The Meeting
• Richard Lundwall, Senior Coordinator
for Personnel Services in Finance
Dept.:
Recorded and transcribed as minutes of
the meeting.
Turned information over to plaintiffs of
Roberts v. Texaco class-action suit.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-7
The Meeting
• Response of Bob Ulrich, Texaco
Finance Manager:
“Black jelly bean” term, in and of itself, is
not derogatory.
Claims to have recalled term from a
conference on diversity.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-8
Public Outcry
• Seemed to confirm preconceived
•
notions of corporate America.
Jesse Jackson became the voice of the
black community.
Called for boycott of Texaco.
• Market response: drop of 5 points within
a week, to 95 3/8.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-9
Bijur’s Next Step?
•
•
•
•
•
Best approach in public-relations disaster?
How to respond to the released tapes?
Should employees be addressed separately
from the public sector?
Is discrimination part of the Texaco culture?
Are reparations necessary?
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-10
Texaco, Inc.
Racial Discrimination Suit
The B Case
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-11
November 4th, 1996
• The New York Times story breaks.
• Independent investigation:
Texaco hired Michael Armstrong,
Manhattan lawyer.
• Initial Texaco press release.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-12
November 4th, 1996
• Bijur’s personally authored letter to
•
employees.
Broadcast message via satellite to
employees.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-13
Behind the Scenes
• Bijur meets with:
Board of directors
Shareholder groups
Influential individuals
• Bijur makes himself available to press.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-14
Subsequent Events
• November 6th, 1996
Bijur publicly outlines six-step plan.
• November 12th, 1996
Bijur meets with Jesse Jackson.
• November 15th, 1996
Texaco settles Roberts v. Texaco.
Bijur addresses employees.
Interview with Tom Brokaw of NBC.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-15
Subsequent Events
• December 1996
Texaco releases Work Force Diversity
Plan.
Jackson drops boycott.
• Summer of 1997
Digitized tapes proved transcripts
incorrect.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-16
Time Line of Events
Nov 4th
Nov 4th
Initial
NYTimes
Press
story breaks Release
Nov 4th
Independent
Investigation
Nov 4th
Bijur’s
Letter
Nov 4th
Satellite
Message to
Employees
Nov 5th
Bijur meets
Press
Nov 5th
Bijur meets
Stakeholders
Nov 12th
Bijur meets
Jackson
Nov 6th
Six step plan
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
Nov 15th
Rob v. Tex
Settled
&
Bijur
addresses
employees
Dec 1996
Work Force
Diversity
Plan & Jackson
Drops boycott
Summer
of 1997
Digitized
Tapes
Show
Transcripts
Incorrect
5-17
Texaco, Inc.
Racial Discrimination Suit
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-18
Credits
A Notre Dame Case Study prepared by research assistants Tanya Goria, DeWayne Reed, and
Dan Skendzel under the direction of Professor J. S.O’Rourke, IV. Copyright 2000.
Power Point to accompany Opportunities and Challenges of Workplace Diversity:
Theory, Cases, and Exercises
by Kathryn A. Cañas and Harris Sondak.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-19
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall
5-20