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Texaco Lawsuit

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| Texaco Lawsuit | | | |

Give a brief summary of the Texaco lawsuit case discussed in Chapter 5 of Opportunities and Challenges of Workplace Diversity. After a company experiences a racial discrimination lawsuit like the one at Texaco, how can an organization implement a comprehensive diversity management policy and become a model of effective diversity management? Canas and Sondak (2011) provide details of the Texaco lawsuit in the text. In summary, Texaco historically has not promoted minorities specifically blacks into certain groups or positions and has fostered a very unhealthy work climate as a result. Six employees filed a class-action discrimination suit in 1994 on behalf of 1500 other employees. In what was supposed to be private discussions, senior leaders of the organization were recorded making racial slurs targeted at African American employees and other comments around destroying documentation and other evidence related to the case. These comments were leaked causing a stir in the national media and increased racial tension in the workplace. Unfortunately, in some cases it may take a lawsuit for organizations to implement effect diversity management policies. For example, DiverstyInc (2013) describes how Sodexo implemented stronger and more open lines of communication with employees using a Chief Diversity Officer. In doing so, Sodexo gained a stronger level of trust with its employees. Sodexo also established metrics to continuously monitor diversity to mitigate discrimination. Metrics on demographics on promotions, management positions and senior executive positions provide a mechanism for Sodexo to take a holistic look at the organization for signs of potential discrimination. Booz Allen Hamilton (2013) re-enforces diversity management by incorporating diversity area to monitor during annual 360 degree performance assessments. Establishing metrics in key areas, mechanisms to hold employees accountable and communication venues are effective ways to organize and establish diversity management at all levels that can be translated into policy. Successful implementation will set the framework for an organization to become proactive with diversity management as opposed to being reactive.

References
Cañas, K., & Sondak, H. (2011). Opportunities and challenges of workplace diversity: Theory, cases, and exercises (2nd ed.). Upper Saddle River, NJ: Pearson Education.
Booz Allen Hamilton (2013). Workplace Diversity. Retrieved 25 January 2013 from http://www.boozallen.com/about/diversity-inclusion/workplace-diversity
DiverstyInc (2013). Diversity Management: The Chief Diversity Officer’s No. 1 Advantage Retrieved 25 January 2013 from http://www.diversityinc.com/diversity-events/how-sodexo-did-it-the-all-important-ceochief-diversity-officer-relationship/

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