Ethics in the Workplace Case Study Action Plan 1

Ethics in the Workplace Case Study Action Plan 

Learning Team C

Ben Bonazza

Marlene Rairden

Joanne Kolonics-McRoberts

Chris Ybarra

Richard Koski

Renee Salgado

Victoria Peskett

University of Phoenix Online

PHIL 323 – Ethics In Management

Michael McNeal

October 26, 2007

Ethics in the Workplace Case Study Action Plan

        This paper will review the case of Texaco, and the largest discrimination settlement of the time. And how Texaco CEO Peter Bijur revolutionized the environment from one of blatant discrimination again minorities to one that embraced diversity, rewarded performance and had a zero tolerance policy for discrimination. This paper will explore the key facts of the case including symptoms, root causes, unresolved issues, roles of key players, and ethical issues. This paper will continue on to review questions posed and to analyze and evaluate alternative solutions to handling discrimination and diversity in the workplace.  In 1999 Texaco paid out $140 million in damages and back pay to African –American employees and $35 million to develop a task force to evaluate the firm’s diversity for a five year period. Texaco had failed to embrace the diverse workforce, and documents revealed the African –American employees were paid less than was established for their job category. Multiple taped conversations documented the use of racial slurs by all levels of employees and management. Others taped meetings and discussion of destroying Then CEO Peter Bijur had developed a diversity program and placed minority employees in key positions. Bijur added a 360-degree feedback for his leadership team and included diversity performance.

DISCUSSION QUESTIONS

Case Questions

1. Identify the ethical culture problem at Texaco in the mid-1990s.

        The ethical culture problem at Texaco can be identified by observing that there were seemingly no ethics at the company during the mid-1990s. The company did not value minority employees’ dignity or talents. In fact, employees and management were caught on tape using “…blatant racial language and behavior” (Nelson & Trevino, 2004, p. 268). Texaco was in such a horrific ethical state that the company failed to take even the simplest of all ethical approaches: the cookie-cutter approach. Instead, the company did nothing in regards to addressing their diverse workforce. Unfortunately, the company’s norms promoted the repulsive behavior. Texaco’s leadership did not offer diverse employees the opportunity to work in a healthy environment. Ethics were so nonexistent that “the organization regularly ignored grievance claims from minorities”, in addition to offering “…lower pay for minority employees” (Nelson & Trevino, 2004, p. 268).

2. Based on the facts in the case, and what you have learned in Chapter 9, evaluate the culture change effort that is underway. 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 they haven’t already done to make the culture change successful?

        The formal culture system has been targeted most in the change effort. Peter Bijur, sent a powerful message then CEO, “made it clear that he would simply not tolerate disrespect and that those who didn’t go along with the culture change would be dismissed” (Nelson & Trevino, 2004, p. 268).  Management can change culture by “articulating a vision; by paying attention to, measuring, and controlling certain things; by making critical policy decisions; by recruiting and hiring personnel who fit their vision of the organization; and by holding people accountable for their actions” (Nelson & Trevino, 2004, p. 231). Bijur took each of the steps when changing the ethical standards at Texaco.

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        The informal culture system is missing. The company has not had enough time to establish heroes or role models. The article is not clear as to whether or not there were major changes to existing positions within the company or if the company had established any rituals that encourage employees to live the culture.

        The new culture seems to be in alignment. Bijur not only hired more diverse staff in high level positions, “he also established formal mentoring and leadership development programs to ensure that the company was preparing minorities for leadership positions” (Nelson & Trevino, 2004, p. 268). ...

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