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There are three obvious lessons to be learned from the Texaco saga now unfolding on the American stage. First, there is a wide gulf between the official policies of an organization and how its people behave in the trenches and executive offices. Second, diversity in its U.S. context is the unfortunate prisoner of EEO definitions at a time when such language no longer fits the reality of global economics. Third, best‐practice management is gaining ground and damage‐control exercises are fast becoming a high art form. Not so obvious is a prescription for what the private sector can do in the next five years to leverage human equity.

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