Hewlett-Packard has found itself in more than a little hot water in recent days over its board of directors’ efforts to determine the source of company information leaked to media sources. Each day, additional information regarding the involvement of Chairwoman Patricia Dunn, Chief Executive Mark Hurd and other officials emerges and the scandal continues to unravel.
CIO.com is on the story, and we’ll keep you posted on the latest developments right here on our HP Spy Scandal page. Keep checking in for updated coverage.
I have been following this unethical drama with lots of interest. The Hurd, Dunn and their executive colleagues shouting matches and sideshows are getting juicy. Some board decisions are simply crazy. Why take collective responsibility, resolve on weird decisions and then embark on dangerous childish hide and seek games digging into one another’s privacy. Even if there were real or imaginary threats caused by counterproductive leaks, and such unorthodox investigative decisions had to be taken, where was the critical oversight board charged with management of these risky overtures. I believe almost all the staff have been soaked into the scandal and business partners worldwide affected in one way or another.
HP Board Lacks IntegrityPosted Sept. 14
The spying scandal is a sorry comedown for a company that HAD a reputation for excellence and integrity.
The board’s actions have been more of the CYA variety than of truthfulness.
WHAT PHONE RECORDS? The board played dumb when they realized that directors’ phone records were used in the leak investigation. No one asked, “How did we get these records?”
BOARD MEMBER RESIGNED FOR “PERSONAL REASONS”: Perkins resigned in May. HP resisted proper reporting to the SEC of the reasons for Perkins’ resignation until the past few days.
STONEWALLING: Dunn and Hurd have made only weak apologies. Dunn has been far more strident about tracing the leaks from an individual than about the corporate breech of integrity in fraudulent investigations.
PROTECTING CRIMINALS: HP has refused to identify the private investigation firm or the third party investigators who are suspected of doing the pretexting.
WEAK APPEASEMENT: Recent announcement of Board changes are weak.
1. Dunn remains chair for 4 MONTHS.
2. She remains on the Board.
3. She will be replaced by Mark Hurd, who is also CEO and President.
4. The Board will backtracking on its new rule, that the Chair and CEO would be different people. This weakens HP’s Corporate Governance.
If the Board had any integrity, it would have acted:
Immediately, upon learning of wrong doing
Wthout coverup, without excuses
Without compromise to the offenders
The Board must demand Dunn’s resignation from the Board. (There will be more legal fallout for HP if she remains, than if she leaves and HP cooperates fully with the California State, Federal, Congressional, SEC and FBI investigations).
The Board needs to have a non-executive Chair. There needs to be a check on the CEO.
The Board must make a public statement, repudiating in the strongest terms, the tactics used by its private investigators, and reiterating its stand on corporate integrity.
The Board must take ACTION to convince the business and investment community that it is determined to regain the mantle of integrity and excellence it once had under Hewlett and Packard.