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Essay / Research Paper Abstract
This 2.5-page paper discusses the class-action lawsuit against Texaco in the mid-1990s and the settlement they agreed upon and why. There are 2 sources cited.
Page Count:
3 pages (~225 words per page)
File: PG56_GPAtexaco.rtf
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listed below. Citation styles constantly change, and these examples may not contain the most recent updates. Diversity in the Workforce Research Compiled for
, Inc. by P. Giltman 4/2010 Please Hailed as one of the largest class-action settlements of its kind,
Texaco Inc. agreed to pay $176 million in 1997 for a racial discrimination lawsuit filed against the company by six black employees. The lawsuit surfaced because the employees did not
feel they were put in positions or being compensated to the amount they felt they were entitled. Plaintiffs also argued that Texaco had established a pattern of racial discrimination. Once
the NAACP found out about the lawsuit, the organizations Legal Defense Fund lent their support and eventually approximately 1,400 other black employees joined the plaintiffs, quickly certifying it a class-action
lawsuit. Facing negative publicity and potential racial boycotts, Texaco decided a $176 million settlement, which is almost negligible considering Texacos annual revenue at the time, made good business sense. The
company was aware of former President Bill Clintons policy to require employers to keep racial records to ensure certain quotas were met, but these were overlooked by Texaco or simply
just swept under the rug. In fact, Richard Lundwall, Texacos former personnel coordinator, secretly recorded several meetings of Texaco executives in which two damning conversations were put on tape.
One recording suggests that Texaco was considering purging the files of incriminating racial data that was required by the federal government. Another tape recording is filled with racial slurs. While
the first recording was the one breaking the law, the NAACP and other employees were more up in arms about the racial slurs and the lack of respect shown to
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