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A Case Study of the Texaco Lawsuit
Pages 85-91

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From page 85...
... WILLIAMSON, JR. Chair, Texaco Task Force I have been asked to address the topic of dealing with lawsuits.
From page 86...
... However, as a participant in the task force, I have had extensive opportunities to learn about the circumstances that led to the litigation and the strategy Texaco adopted to turn the situation around. As a preliminary note, I want to make it clear that I am not participating in this conference in my official capacity as the chair of the task force.
From page 87...
... The Texaco case was settled in late 1996, and members of the task force were formally sworn in in June 1997 as special masters of the federal district court. In the interim period of about six months, between December 1996 and June 1997, Texaco publicly committed the company to undertaking a wide-ranging reform program that partly tracked the provisions of the Settlement Agreement, but also included ambitious efforts to promote diversity and hold executives accountable for successful performance on the diversity front.
From page 88...
... Notwithstanding the chorus of criticism, the Texaco officials announced that they believed the task force provided the company with a uniquely independent resource that they would not have been able to hire to assist them in fulfilling their responsibilities under the Settlement Agreement and achieving Texaco's broader equal opportunity and affirmative action goals. In other words, Texaco did not approach the task force as a punishment for past transgressions or as a Trojan horse that had been rolled into their midst.
From page 89...
... Women and minorities regularly participate in the succession-planning process at all levels to ensure that all candidates who have demonstrated the potential for upward mobility into senior positions receive fair consideration. Also, in certain instances where there are gaps in the internal talent pool available to fill key positions, Texaco has retained search firms with the explicit understanding that they (1)
From page 90...
... How can you get buy-in from the aggrieved people who were involved in the lawsuit? At Texaco, some black employees had filed a lawsuit, which was moving forward when the New York Times got hold of a tape recording of a senior manager in an executive meeting allegedly using the N-word and making other disparaging remarks.
From page 91...
... Having minorities and women on the board is important, but the entire Board of Directors must buy in to the program. Another key factor was for members of the protected classes and the litigants to become actively involved in succession planning and company planning.


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