Background of the Case:

Roberts v. Texaco, Inc.

Pending lawsuit from 1994.

$520 million filed by six employees on behalf of almost 1,500 other

minority workers.

Texaco fostered a racially hostile environment.

Preparation: the CEO presented the statistics contrary to the allegations made
against the company.
On ABCs Nightline, Bijur offered the following:

16.6% of its U.S. work force of 27,426 employees were minorities in

1991.

In June of 1996, 22.3% of its 19,554 employees were minorities.

Of those, minorities in management positions were at 6.8% in 1989

and 9.5% in 1994.

Trust, understanding, credibility, satisfaction, corporation, and

agreement. The elements for crises public relation exist or not
The independent investigation was conducted before the CEOs interaction with
press. The company appointed an outside lawyer (Michael Armstrong) to conduct an independent investigation
and that it would make referrals to law enforcement agencies if its inquiry found that documents were destroyed.

The CEO took upon himself to interact with and be open with the press.
Interaction with public (one way or two way)
CEO took initiative to contact every stakeholder, press release to the general
public, personally authored letter to general employees, broadcast to employees
via satellite,
Little cogs have made the blunder now big wheels came to rescue:
The release of information was highly central (through CEO) but still conducted
with significant efficiency. The story broke in NY time on 4 th of November and on
the very same day the investigation report and dissemination of information
started. The company was not taken by surprise regarding this issue.
Actions the CEO took:

Independent investigation on 4th Nov 1996

Press releases and interaction with employees started.
Six step plan was introduced by the company.
Workforce diversity plan introduced after which the renowned Rev. Jesse
Jackson called off for the boycott of the company.

Six Step Plan by the CEO:

One -- senior executives from Texaco will visit every major company location in the U.S. to
meet with our people. Their mission will be to apologize to them for the embarrassment and

humiliation this has created. We want them to understand both our personal embarrassment
and our firm resolve to ensure that nothing like this ever happens again at Texaco.
Two -- we will gather employees together immediately to refocus on our core values and on
what we each need to do to create a workplace free of intolerance. It will be a time of
reflection and a time for taking personal accountability for actions and attitudes.
Three -- we are expanding our diversity learning experience to include all employees, in
addition to our managers and supervisors. This two-day seminar, in which I have already
participated, along with the senior officers of the company, focuses on both the intent and the
impact of personal behavior on peers, teams and the organization overall.
Four -- we will reemphasize the critical importance of our confidential Ethics Hotline as a
vital tool for reporting any behavior -- any behavior -- that violates our core values, policies
or the law. Calls may be made anonymously, 24 hours a day, seven days a week. We are
extending this service to a broader list of countries outside of the U.S.
Fifth -- I have today asked Judge A. Leon Higgenbotham of the New York law firm of Paul,
Weiss, Rifkind, Wharton & Garrison to work side by side with us to assure that the
company's human relationship policies and practices are consistent with the highest standards
of respect for the individual and to assure that the company treats all its employees with
fundamental fairness.
Judge Higgenbotham is Chief Judge Emeritus of the United States Court of Appeals for the
Third Circuit and Public Service Professor of Jurisprudence at Harvard University. The Judge
is the recipient of numerous honors, including the Presidential Medal of Freedom, the nation's
highest civilian honor, and the National Human Relations Award of the National Conference
of Christians and Jews. He is the author of IN THE MATTER OF COLOR -- Race and the
American Legal Process. I am grateful that he will be assisting us.
Sixth -- we are also creating a special committee of our Board of Directors, to be headed by
John Brademas, President Emeritus of New York University. This committee will be charged
with reviewing our company's diversity programs in their entirety -- at every level within our
company.