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Culture Change at Texaco in 1999

Cuture change at Texaco in 1999: What were the unresolved issues? What roles did the key players have?

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TEXACO CORPORATION 1999

1. POINTS TO BE INCLUDED:

Problem was Racism

The issue is one of exclusion of minorities from the workforce at Texaco and particularly on the management level of the company. This problem was first reported at TEXACO in 1996, but was not made public until 1999. The attempts to change their image were not fully successful as the hiring of minorities was cosmetic and the positions they were given were not on a decision-making level at corporate headquarters. The "good old boy" regime stayed in place for the most part.

Financial Implications

When tapes of racial comments made by white TEXACO employees were aired, the stock fell and TEXACO lost 1billion dollars in one day of trading. This demonstrates the power of the shareholders, who are also stakeholders. Shareholders are made up of the general public and the general public is made up of a cross section of a multiracial society.

Key Players

Peter I. Bijur , CEO and chairman of Texaco Inc. ( It was his employment practices and ...

Solution Summary

The issue is one of exclusion of minorities from the workforce at Texaco and particularly on the management level of the company. This problem was first reported at TEXACO in 1996, but was not made public until 1999. The attempts to change their image were not fully successful as the hiring of minorities was cosmetic and the positions they were given were not on a decision-making level at corporate headquarters. The "good old boy" regime ...

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