Culture Change at Texaco

Topics: Morality, Ethics, Culture Pages: 4 (953 words) Published: July 15, 2011
Team Case #2: Culture Change at Texaco

By “The Moral Matadors” (team #6)

Michael Breler | Chris Hollis  | Matt Hoover  | Laura Beth Martin | Chanda Pathak | Scott Stover

PIPSCo CASE WRITE-UP

Situational Facts

• Texaco was sued for discriminating against African Americans • CEO Peter Bijur settled the case for $175 million ($140 to damages, $35 to independent task force) • The stock to fall $3 per share

• Blatant racist language and behavior on the part of Texaco employees and managers • Documented lower pay for minority employees (in some cases lower than the minimum for the job category) • Racist comments made by Texaco executives were captured on audio tape and leaked to the public • Senior financial analyst Bari Ellen Roberts wrote a book detailing the humiliating experiences faced by herself and many minority employees, as well as how Texaco grievance claims by minorities • Low crude oil and natural gas prices put the company in financial hardship • Due to low revenues and earnings 8,500 employees were laid off • The Peter Bijur still launched a complete cultural change effort; he made it clear he would not tolerate disrespect those who didn’t go along with that culture change would be dismissed • Several initiatives were started by Bijur in order to promote diversity, including: speaking to outside groups about diversity, hiring African-Americans to key positions within the company, designing new recruiting systems targeting minority candidates, and setting up scholarship and internships targeted towards minorities • In 1999 44 percent of new hires and 22 percent of promotions went to minorities • The company spent over a billion dollars with minority and women owned vendors in 1997 and 1998, exceeding a goal set by the firm in 1996 • Although the overall percentage of women and minority employees increased slightly, the percentage of new hires and promotions in both categories declined,...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about culture
  • Texaco Essay
  • Social and Culture
  • Does Technology Change Culture or Culture Change Technology Essay
  • CASE STUDY: Cultural Change at Texaco. Essay
  • Organizational Culture and Change Essay
  • How to Change Your Culture Essay
  • Essay about Bringing a Change in Organizational Culture

Become a StudyMode Member

Sign Up - It's Free