(Solution Download) 1 Identify the ethical culture problem at Texaco in the

1. Identify the ethical culture problem at Texaco in the mid-1990s.
2. Based on the facts in the case and what you have learned in this chapter, evaluate the culture change effort that is under way. What cultural systems have been targeted in the culture change effort? What systems are missing, if any? Does the culture appear to be in alignment? Misalignment? What else might management do that it hasn?t already done to make the culture change successful?
3. How long might such a culture change take?

In 1999, Texaco settled a lawsuit that charged the firm with discriminating against African American employees. Texaco paid $175 million, the largest settlement of this kind ever. The stock had fallen $3 per share after damning audiotapes became available to the public. Peter Bijur, then CEO, decided to stop fighting the lawsuit and settle. Minority employees received $140 million in damages and back pay, and $35 million was used to establish an independent task force to evaluate the firm?s diversity efforts for the next five years.


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