Texaco Case

1. Ethical Issues: Fully explain what the ethical issues are in this case. Why are they relevant?

Texaco had a long history of systematically discriminating against minority employees in promotions and has fostered a racially hostile environment. They failed to promote minority employees to higher positions and compensate them in relation to Caucasian employees in similar positions. Supervisors openly discussed their view that minorities were ignorant and incompetent.

The company’s problems got worse when a former employee wrote a book speaking about humiliating experiences that minorities faced while at Texaco. These problems continued because they were afraid to speak up for themselves. Management and other employees were scared that their jobs would be given to the minorities thus inhibiting and discouraging them. They intentionally and openly discriminating them thus de-motivating them from wanting to move up to management roles.

These ethical issues were relevant because it would in the long term affect employee productivity, profitability, thus affecting long term profits and growth.

2. Affected Parties: Identify all key stakeholders and discuss how they see the situation, how they feel about the issue. Argue the case from each of their perspectives. If you apply the Golden Rule, what would your decision be?

Minorities which would include women, minority races i.e. African American, Latinos, etc. felt discriminated against, humiliated, demoralized, demotivated. As a minority being treated unfairly, I would be demotivated to work hard and do my best.

Management (CEO Peter Bijur) believed that their actions were part of the norm/culture of the company. As part of the management team and being Caucasian, I would have felt powerful, righteous as I was acting the way everyone else was. Based on the case, if applied the Golden Rule, I couldn’t fathom how management would react if their discriminative actions were reciprocated by the affected employees.

Other Employees were fearful, had low moral and trust in their corporate environment. Seeing how my co-workers were treated, I would be fearful of my work environment every minute of the day not knowing to expect on how I could be mistreated the next day. From their perspective, if I applied the Golden Rule, I would not do my best and find ways and means to get back to the management team who is discriminating and disrespectful of the minorities.

From the Stockholders/Clients perspective, I would be doubtful and have no confidence in Texaco as a company. If were a stockholder or client, I would have pulled out my investment and or decide not to do business with a company that discriminates and treats the minorities the way they do or have a change of strategy based on Bijur’s directive. If I applied the Golden Rule, I would pull out my investment from the company and decide