West Point Market: Managing a Challenge from the EEOC.

Russell Vernon, a second-generation owner and manager of West Point Market in Akron, Ohio, must decide whether to settle, go to court, or reconcile (mutually agreeable solution) with the Equal Employment Opportunity Commission on an allegation of racial discrimination. He firmly believes that

he is innocent. If he chooses to reconcile or settle the case out of court, he could be construed as a racist. If he chooses to go to court and loses, he may lose his family business. This emotionally charged situation is presented as a management decision that must be based on an analysis of the facts. The case is especially interesting due to the perceptions that students have of "the role of governmental agencies" and "the use of racial-based quotas in the WORKFORCE."

It all started with a letter from the Equal Employment Opportunity Commission (EEOC) on March 29, 1994, to Russell Vernon, the owner of West Point Market. The one-page letter stated that the federal government had "probable cause" to believe that two dozen minority job applicants were unlawfully turned away without being fairly considered for employment.

With this brief document, a drama began to unfold. The EEOC believed that they had a strong case because fewer than 10 percent of West Point Market's employees were African-American, compared to 33 percent in the city of Akron. Vernon believed that he had a strong case because his staffing reflected the fact that there were very few blacks with the appropriate job skills in the areas surrounding his grocery store. The EEOC and West Point Market both felt passionately that they would win their case if they went to court.

Determining Russell Vernon's guilt or innocence in this legal matter is outside the scope of this case. Vernon faced one of the biggest challenges of his life. How should he manage this legal challenge? What should he do about it? How should he invest his time and money in defending himself? Should he reconcile? Settle quickly out of court? Take the EEOC to court? Vernon thought that it was very possible that this incident could break his business.

RUSSELL VERNON AND HIS COMPANY

Russell Vernon was a tall, slim, energetic native of Akron, Ohio. Friends described him as intellectual and sincere. Born in 1942, he was married and had two sons, Rick and Mike. At the age of 36 he had become the president and sole stockholder of West Point Market, an up-scale food store founded in 1936 by his father and two partners.