Texaco Press Release - Texaco Chief Executive Says Company Made Excellent Progress
FOR RELEASE: TUESDAY, JULY 29, 1997.
WHITE PLAINS, N.Y., July 29 - Texaco made significant strides toward the goals of its diversity plan during the first six months of a five-year effort, Texaco Chairman and Chief Executive Officer Peter I. Bijur said today.
"Last December, Texaco made a commitment to a more inclusive and diverse workforce and to broader relationships with women- and minority-owned businesses," said Bijur. "In the first six months of the program, the people of this company made excellent progress toward the goals we stated in our plan.
"The momentum we created in the first half of the year is a strong beginning for this program," he continued. "The employment initiatives and partnerships with minority- and women-owned businesses will help shape Texaco into the globally competitive company we must be to succeed in our second century of business."
Bijur added, "We will continue to periodically report on our progress and achievements on this plan. We look forward to continuing our dialogue with the many groups that have provided input on these business endeavors."
Texaco Workplace Achievements In The First Six Months
Expanded Hiring And Recruitment
- During the first half of 1997, 50 percent of the approximately 4,400 new hires in the U.S. were women and 38 percent were minorities. African Americans accounted for 16 percent of the hires and Hispanics accounted for 15 percent.
- To enhance recruitment and hiring practices, search firms were asked identify a wider array of candidates for selection, and the company's college recruitment programs were expanded to include more minority colleges and universities. In June, 50 scholarships in the new "Inroads to the Star" program were awarded to minority students entering college for engineering and technical degrees. A training program was implemented to improve the interviewing, selection and hiring skills of managers.
Promotion, Retention And Career Development For All Employees
- Women earned 47 percent of the approximately 325 promotions at Texaco during the first six months of the year and minorities earned 24 percent, including 12 percent by African Americans and eight percent by Hispanics.
- Written, objective leadership standards were completed to clearly identify the requirements and development needs of managers and to select leaders for promotion and new assignments.
- A new training program for first-time managers and supervisors is now being piloted.
Workplace Initiatives Directed At Diversity
- All U.S. employees must participate in a redesigned two-day diversity learning experience. To date 6,205 employees have attended, with the goal of 10,000 employees by the end of 1997.
- All human resource (HR) committee meetings held in each business unit now include representation by women and minorities.
- Texaco's expanded 360-degree feedback program is being 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.
- Managers' success in meeting inclusive workforce goals is tied to their compensation and performance reviews. In addition, compensation for executive management now is linked to the achievement of inclusive workforce goals and to annual employee survey results relating to the issue of respect for the individual.
- A Corporate Diversity Council, consisting of nine senior-level managers, was formed to support workplace diversity policies and practices.
New Solutions For Workplace Issues
- A voluntary alternative dispute resolution process, "Solutions," was introduced to resolve workplace issues through independent mediators and arbitrators. An "ombuds" program also will be launched this fall, which will enable employees to use a confidential and independent counselor to resolve workplace issues.
Business Partnering Achievements In The First Six Months
Increased Contracts And Services With Women- And Minority-Owned Firms
- Through June 30, direct expenditures with minority- and women-owned businesses increased $37 million over the same period in 1996 to $106 million.
- In addition to the $106 million, more than $1 million in service fees were paid to minority- and women-owned financial services firms during the first half of 1997.
- Purchases from African-American and Hispanic firms totaled about $8 million each, up respectively from $1.6 million and $5 million in 1996.
- Texaco now retains 21 minority- or women-owned law firms and two minority advertising agencies, up from six and zero respectively in 1996. The use of minority consultants also increased in accounting, tax, public relations and human resources.
Financial Relationships Expanded With Women- And Minority-Owned Firms
- More than 50 banking relationships with minority and women firms are in place, compared to 21 in 1996.
- Investments handled by minority and women pension managers increased to $186 million from $31 million in 1996.
- A new venture capital investment of $5 million was implemented with a minority-owned business.
- A group of minority- and women-owned firms underwrote a $150 million public financing for Texaco - a first for a U.S. industrial company.
Insurance Coverage With Minority Firm Increased
- Insurance coverage with an African-American-owned company increased from $25 million to $200 million.
Diversity Goals In Retail Sector Is Significantly Ahead Of Plan
- Wholesalers. Texaco added eight minority and women wholesalers during the first half of 1997, well ahead of schedule to add nine in its full-year 1997 plan.
- Independent/Lessee Retailers. Three African-American retailers were added in the first half of the year. Five Star Mart Franchise agreements were signed with minorities, one of which was African American. Overall, the company is committed to maintaining the level of women and minority independent retail owners and lessee operators at the existing 45 percent level.
- Texaco Owned/Operated Outlets. The level of minority and women managers at company owned and operated retail outlets is currently 67 percent. Texaco added 12 African-American store managers in the first six months, far exceeding its full-year goal of adding eight.
- Lubricants. Seven minority- and women-owned Xpress Lube outlets opened in the first half of 1997, well ahead of the schedule to achieve 10 in the full-year plan. Also, five minority- and women-owned lubricant distributors joined Texaco, compared to a full-year plan of six.
Updated: July 1997