Does your company discriminate? Yes, some companies do mistreat employees. Here's what you need to know to protect yourself or, if necessary, take action. (Special Report).

BEFORE LANDING A POSITION AS A SALESMAN AT XEROX, FRANK WARREN SAYS HE WAS DENIED four times. He was also passed over, he says, for a white counterpart who had failed at several positions at the company. Despite having nine years of experience in graphic arts, Warren, a New York University graduate, says he was never given the chance to work in the lucrative graphic arts division, where clientele equipment purchases averaged between $200,000 and $400,000. Instead, he handled small accounts, where equipment purchases ranged from $50,000 to $70,000. "If [Xerox] puts you in situations where there's very little opportunity [to advance], you don't really get recognized in the company," says Warren. "And you get looked at as an underachiever."

Warren says this happened most often to the black employees. He says he witnessed work teams comprised solely of African Americans; the white employees referred to one as the "Soul Train Team."

According to Warren, his white counterparts--many right out of college--were given preferential treatment. Warren observes that even with no experience, they were placed in positions that allowed them to advance easily within the company.

As black professionals like Warren continue to move up the corporate ladder, many are finding that the rungs extend only so far. Are they out of sync with corporate culture, or is it racism? How can you tell the difference, and what can be done to change discriminatory behavior?

In Warren's case, he became the lead plaintiff in a class-action lawsuit against Xerox. He is part of a growing number of educated and experienced African Americans taking their employers to court, In 2001, 21,000 discrimination lawsuits were filed in federal court. That same year, close to 5,000 complaints regarding promotions, or lack thereof, were filed with the Equal Employment Opportunity Commission (EEOC). Federal Express, Nextel Communications, Sodexho, and BellSouth are among the major corporations presently engaged in court battles, Coca-Cola, Texaco, Winn-Dixie Stores, and Shoney's have already paid out combined settlements of more than $500 million.

"Racism [in the workplace] is the process of limiting and curtailing, creating an environment where access is not possible, right down to the management of dreams and visions," says Robert L. Morris, founder of The Center for Diversity Assessments, Analysis and Audits in New York City (www.center4diversity.com). The Center, in conjunction with The Center for Forensic Economic Studies, provides analytical and statistical reviews of organizations' diversity visions and efforts.

Morris says discriminatory practices follow a tradition where business leaders are created in the likeness of their founders.

"Corporate brass promote those who are most like them," he says. "Discrimination and racism will continue to exist until companies go to a true system of merit--standards of performance. That does not exist."

James Vagnini, attorney for the class-action lawsuit against Xerox, agrees. "My clients consistently ranked No. 1, 2, and 3 in their training classes at Xerox, but they were always the last to get their territories [to oversee]," says Vagnini, who is also the attorney for a class-action suit filed against the company on behalf of employees at an operational facility in Ohio. "One woman took accounts that were failing and made them profitable. Then they were given to other individuals."

From the outside looking in, many companies appear to be committed to diversity initiatives and creating equal opportunities. If Xerox employees have workplace concerns, for instance, they have access to executives several levels above their direct managers. The company also has several nationally recognized caucus groups: a national black employees' association, a gay and lesbian employees' association, a women's alliance, a Hispanic association, an Asian alliance, and a black women's leadership council. The company has received a number of honors for it's diversity efforts.

"We've been focusing on diversity in the workforce since the 1960s," says Patricia Nazemetz, vice president of human resources for Xerox. "[The caucus groups] have proven to be one of our strongest networks. They help us understand how we can leverage diversity."

Plaintiff testimonies, however, underscore the failures in the system. Companies such as Xerox, often upheld as a standard for effective workplace diversity policies, are now finding themselves in court trying to defend their reputations.

"Historically, we've been able to identify these types of circumstances before they go outside the organization," says Nazemetz. "I was seriously disappointed [to learn of the lawsuit] largely because we feel that we have various alleys for dialogue."

The problem with solving workplace discrimination, say attorneys, is not a lack of policies and procedures; it's their lack of implementation.

In 2000, Coca-Cola announced that it would pay $192 million after workers alleged that the company discriminated against minority employees in pay, promotions, and evaluations. But attorneys for the plaintiffs say ending workplace discrimination requires more than a big payout.

This year laid the foundation, says Cyrus Mehri, co-lead counsel for the plaintiffs in the Coca-Cola case. "But year two will be critical for changing Coke." The court appointed a task force to ensure that the company improves its human resources policies, investigates complaints, and writes periodic reports evaluating how well it implements a workforce with greater access to opportunity.

And it appears as if Coke is responding. Mehri notes that when his African American clients first filed their lawsuit, there was one employee of color reporting directly to M. Douglas Ivester, then Coca-Cola chief executive. That employee was later demoted. Now under Coke's new CEO, Douglas N. Daft, there are several.

According to Coretha Rushing, Coca-Cola's senior vice president of human resources, among the company's efforts is an $800 million minority supplier diversity program targeting minority- and women-owned vendors.

Consequently, the question many black professionals face is whether they have actually been discriminated against, says author Ancella Livers. "In the good old days, racism and discrimination were black and white. Today, it may not be as clear. So you wonder, 'Was that a racial situation?' or 'Did the client not want to talk to me because I'm black--or maybe we just didn't get along?' 'Was I on point in my presentation?'"

But ambivalence can cut both ways in corporate America. "Sometimes whites are afraid of giving blacks feedback," mostly for fear of being labeled racist, says Livers, even if the information is performance-related. "But if you don't get feedback, how can you improve your performance and work on your development? You have to figure out what is really happening."

If discrimination is taking place, it's important to take action. The fallout from being overlooked or held back can be devastating to a black professional, says Livers and Keith A. Caver, co-authors of the book Leading in Black and White: Working Across the Racial Divide in Corporate America (Jossey-Bass; $27.95). Caver has interviewed managers who felt diminished or exhausted, which can lead to feelings of inadequacy (see "Can't We All Just Get Along?" this issue). "They spend so much time around this whole notion of trust and being hurt," he says. Many of them were also concerned with "keeping their guard up" or being labeled a troublemaker. "Everything is an issue," he adds.

Workplace Survival Strategies

While there is always the possibility of being discriminated against, there are ways to strengthen your position within a company. Morris makes suggestions for clarifying possible mixed signals and workplace ambiguities.

* Develop a goal-oriented career map. Outline your goals and have your progress supported by annual performance objectives developed with your managers, Morris insists. "How can you defend why you did not get a promotion, become successful or get a raise when you don't have a road map for your career?"

It will also help you determine how compatible your vision is with the company's mission statement.

* Find a mentor. "The manager who sits with and hears you express your professional goals or vision and involvement in a company is typically the person who will see that these things happen," says Morris.

Mentors can help discern your company's corporate politics and best explain the corporate culture, They teach you how to operate in the work environment. They can also identify high-visibility projects for you to target.

* Always think business. To be successful, professionals--black and white--must demonstrate the ability to add value. "I think it's important for employees to always remember--and there is some confusion sometimes--this is not a social construct," Morris says. "It is a business environment. It is in place to make money. The way a company can assist that process is to create an environment that encourages and motivates the willingness of all of its employees to contribute value."

How to Fight Discrimination in the Workplace

Of course, there is evidence that even hard-working, dedicated employees suffer from discrimination in some work environments and have to take legal action. A class-action suit is brought when several current or former employees can prove discrimination has taken place. Few of these cases actually make it to trial. The biggest hurdle for many is receiving class certification, where a judge determines the grounds for a suit based on definitive discrimination practices.

"With any employee, whether it's a small or large company, the question is whether white employees are given preferable treatment in similar situations," says Bob Stroup, assistant counsel at the NAACP Legal Defense and Educational Fund Inc. "It is also important to see if there's a pattern, if it's happened several times or with several black employees." If so, it is important to know your rights and how to take action against unfair work practices.

* Keep records. Positive performance evaluations, letters of commendation, and e-mails of a job well done can help support your claims, should you take legal action.

* File a complaint with a federal body. Call the EEOC, but there are also state and city organizations, says Stroup. "These organizations were created for companies to engage in an informal resolution of dispute." It may not be necessary to take further legal action, but often complaints have to he filed within a certain time period. If mediation proves unfruitful, a record of your filing will help to strengthen your case.

* Complain internally. Through human resources, many companies have internal mechanisms to resolve problems. "Filing a complaint within your company, however, does not protect you under the law, particularly if your charges become the basis for a class-action suit and are brought before the court," explains Stroup. The statute of limitations could also easily run out while you're waiting for your company to settle this dispute--if it settles it at all.

* Talk to a lawyer. A civil rights lawyer will help you better understand your rights and your options under the law. There are cases where an attorney can mediate a situation before it has to go to court.