Legal Issue
Texaco, one of the larges oil companies, recently faced to a discrimination lawsuit. In 1994, six African-American employees on behalf of 1500 other employees of Texaco filed suit asserting that Texaco engaged in illegal racial discrimination. They claimed they had not received equal employment opportunities. African – American employees also claimed that Texaco employers did not respect them as other white employees. Employers called minorities "orangutans," "porch monkeys" and "uppity".
Nevertheless, until November 3rd, 1996 when Texaco executives’ racist audiotapes were leaked to the public, the case was brought up. In the tape content, these executives made disparate treatment to minorities, and they were strived to remove the documents relating to the discrimination suit. With support of the NAACP Legal Defense, the Clinton Justice Department, and the Clinton EEOC, black employees joined the suit against Texaco.
In accordance Title VII of the Civil Rights Act of 1964, racial discrimination is illegal, so Texaco faced many years of government harassment and negative publicity. On March 21st, 1997 the settlement what Texaco suggested was approved. The settlement contained “the $115 million in cash payment to the aggrieved minority employees; over $20 million in salary increases to the aggrieved minority employees; approximately $35 million for "diversity / sensitivity training", and the creation of an Equality and Fairness Task Force.” Ethical Dilemma
The racial discrimination at Texaco is not only illegal under the Title VII of the 1964 Civil Rights Act but also unethical. It breaches the right of human to be treated equal regardless of race. Because of this issue, Texaco Inc faces with the threats of racial boycotts by the usual racial special interests such as the NAACP and its Legal Defense Fund. It also faces with extensive amounts of negative publicity from the plaintiffs and other people, which may