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Texaco’s Company Facts: Oil and Gas Company Key manager revealed taping of executives referring to African
Americans as f_ _ _ _ _ _ niggers Minority employees felt they lacked equal opportunities of advancement and
promotions Executives were taped referring to African Americans as jelly beans and agreeing to shred evidence
requested during a deposition
Ethical Issues :
Ethical Issues In March 1994, six African American Texaco employees filed a lawsuit on behalf of 1,400 African
American employees claiming discrimination Lawsuit based on allegations that Texaco had discriminated against
them in terms of promotions and fostered a hostile corporate environment Critical documents shredded that related to
the promotion of minority employees
Ethical Issues :
Ethical Issues Executives lacked proper ethical behavior skills and training; which resulted in discriminatory actions
Texaco did not have proper diversity and sensitivity programs
Courage/Ethical Conviction :
Courage/Ethical Conviction Richard Lundwall, senior coordinator of personnel should have come forward with the
taped conversation of discriminating information much earlier Finance management should have reported demands
by executives not to retain personal copies of vital information of the lawsuit
Conclusion :
Conclusion Texaco initial reactions to this matter were: Lacked urgency Resulted in unethical behavior by executives
and management Failed to address the issue and they did not have a formal ethical decision making framework
process Cost the company shareholders and owners over $176m and put a strain on the company’s reputation
Conclusion :
Conclusion As a result of this case Texaco should look to: Establish programs that address diversity and monitor the
advancement of minorities within the company Develop ethical training programs for all level of employees Create an
annual code of conduct exercise for all employees that address ethical behavior and makes each employee
accountable for their behavior Continuous monitoring of all diversity programs established to avoid future
discrimination lawsuits