Texaco Press Release - Texaco Announces 1997 Accomplishments in Diversity and Economic Outreach
Company's 1997 Expenditures With Minority- and Women-Owned Businesses More Than Double to Nearly $300 Million
FOR IMMEDIATE RELEASE: TUESDAY, FEBRUARY 3, 1998.
WHITE PLAINS, N.Y., Feb. 3, 1998 - Texaco has made "significant progress" toward the goals of its five-year diversity and economic outreach efforts, Chairman and Chief Executive Officer Peter I. Bijur announced today in reporting on the company's first year results.
"In late 1996 Texaco established an ambitious and comprehensive plan directed at ensuring fairness and economic opportunity for our employees and business partners, and enabling us to better compete in the energy marketplace," Bijur said. "Today we can report that we are making significant progress toward those goals; progress that is clearly beneficial to our business objectives."
Among the highlights of the 1997 progress report (further details provided below):
- Direct expenditures with minority- and women-owned business enterprises (MWBEs) totaled $298 million for the year, or 7.1 percent of total discretionary spending, an increase of $159 million from 1996.
- Minorities and women accounted for 69 percent of the 8,904 new hires in the U.S.
- 57 percent of the 599 promotions went to minorities and women.
- Texaco added 13 minority and women wholesalers, exceeding the 1997 plan to add nine.
"During a year when record earnings were achieved, the people of Texaco also surpassed the objectives laid out in our diversity plan," said Bijur. "Texaco's commitment to diversity in our workforce and business partnerships is rooted in the recognition of the value these efforts bring to achieving our business objectives."
1997 Business Partnering Achievements
Increased Contracts and Services with Minority- and Women-Owned Firms
- In 1997, direct expenditures with minority- and women-owned business enterprises (MWBEs) reached $298 million a $159 million increase over the same period in 1996, exceeding our goal by $123 million. Purchases from African American and Hispanic American firms totaled $30.8 million and $26.7 million respectively, up from $5.6 million and $11.1 million in 1996.
- An additional $3.6 million in professional service fees were paid to minority- and women-owned financial and legal services firms.
Financial Relationships Expanded With Minority- and Women-Owned Firms
- Texaco now has banking relationships established with more than 50 minority- and women-owned firms, compared to 21 in 1996.
- A $50 million credit facility with 45 minority-owned banks was instituted.
- A group of minority- and women-owned firms underwrote a $150 million public financing for Texaco a first for a U.S. industrial company.
- Investments handled by minority and women pension managers increased to $186 million from $31 million in 1996.
- A new venture capital investment of $10 million was implemented with a minority-owned business that invests in publicly traded firms owned or controlled by women or minorities.
- Insurance coverage with an African American-owned company increased from $25 million to $200 million.
Diversity Goals in Retail Sector Achieved
- Wholesalers. Thirteen minority and women wholesalers joined Texaco in 1997, exceeding the company's goal of adding nine. Minority and women wholesalers are over seven-and-one-half percent of the Texaco wholesale network, up two percent from 1996. This exceeds our 1997 goal of a one-percent increase.
- Independent/Lessee Retailers. Presently, minority- and women-owned independent retailers and lessee operators represent 29 percent of this class of trade: one percent above the 1996 level. During 1997, 14 African American retailers were added.
- Texaco Owned/Operated Outlets. Minority and women managers run 68 percent of the company owned and operated retail outlets. In 1997, Texaco added 22 African American store managers, exceeding our one-year goal by 178 percent. African American store managers now account for 10.5 percent of store managers at company owned and operated outlets.
- Lubricants. Seven minority- and women-owned lubricant distributors have joined Texaco, exceeding our one-year objective of six. Five-and-one-half percent of the lube distributor network are minority- and women-owned distributors, up one percent over 1996 levels and satisfying our 1997 goal of a one-percent increase. The number of minority- and women-owned xpress lube facilities increased by two in 1997, and now account for eight percent of Texaco's xpress lube network, a slight decrease from 1996.
Texaco 1997 Workplace Achievements
Recruitment, Hiring and Promotion of Employees
- 50 percent of the 8,904 new hires in the U.S. were women and 39 percent were minorities. African Americans and Hispanic Americans each accounted for 15 percent of the hires. Altogether, minorities and women accounted for 69 percent of all new hires.
- Women earned 44 percent of the 599 promotions at Texaco during 1997 and minorities earned 25 percent, including 11 percent by African Americans and nine percent by Hispanic Americans. Altogether, approximately 57 percent of promotions went to minorities and women.
- In June, 50 scholarships in the new "Inroads to the Star" program were awarded to minority students entering college for engineering and technical degrees.
- In 1997, 11,071 U.S. employees participated in a redesigned two-day diversity learning experience, exceeding the company's goal of having 10,000 employees attend the workshop.
- Compensation for executive management now is linked to both the attainment of inclusive workforce goals and the results of an annual employee survey relating to the issue of respect for the individual. Success in meeting inclusive workforce goals is tied to compensation and performance reviews for all managers.
- Texaco's expanded 360-degree feedback program was implemented to provide each manager with an annual review by their direct reports, peers and their own manager as a tool to improve their effectiveness.
- A revised performance management process will be implemented for the 1998 employee performance evaluation.
- A Corporate Diversity Council, consisting of 10 senior-level managers, was formed to support workplace diversity policies and practices.
New Solutions for Workplace Issues
- A voluntary alternate dispute resolution process entitled "Solutions" was introduced to resolve workplace issues through independent mediators and arbitrators.
- An "ombuds" program, which enables employees to use a confidential and independent counselor to resolve workplace issues, will be launched in early 1998.
Updated: February 1998