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Ethics final > BP and Texaco > Flashcards

Flashcards in BP and Texaco Deck (9)
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1
Q

what permitted discrimination to occur in Texaco?

A
  1. hiring practices were lack of focus and effective policies to implement and oversight
  2. tone at the top
2
Q

how could such discrimination have been prevented?

A
  1. publicize promotion of employees for merit (regardless of race)
  2. keep records of hires and promotions
  3. disciplines in any cases found
  4. factor into goals for managers
3
Q

Is whistleblowing ethical?

A

If executives want their employees to act ethically, would benefit when whistleblowers come forward within the company; despite whistleblowing may be counter to many cultures’ norms

4
Q

could a protected whistleblowing mechanism have helped?

A

Yes

5
Q

what happened to Texaco?

A

Accused of racial discrimination in hiring practices

6
Q

how did Texaco react?

A
  1. payment to plaintiff class of $115 M plus 11% raise
  2. creation of equality and tolerance task force
  3. adoption of company wide diversity programs
  4. nationwide job postings for senior positions
  5. monitoring of compliance with settlement terms
7
Q

was BP’s corp. culture ethical?

A
  1. BoD operated in a continuous crisis mode
  2. execs. pushed for aggressive cost-cutting with little regard for safety
  3. co. grew too fast
  4. mgt continued to ignore red flags
8
Q

why has BP’s culture developed as it has?

A
  1. lack of ethical leadership and clarity about importance of safety as the co’s fundamental value
  2. quick growth thru M&A created a complex org, dealing with difficult technical issues such as deep water drilling
  3. mgt is narrowly focused on short term profits
9
Q

How would you suggest changing BP’s culture?

A

embrace safety–create a culture of safety: tone at the top, code policies of procedures that emphasize safety, communication and training, embed safety in performance goals and employee evaluations