Scobleizer - Latest Comments in HP has major ethical problem, day 4

Re: HP has major ethical problem, day 4

pwdl — Thu, 14 Sep 2006 03:39:04 -0000

HP Board lacks integrity

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
* without 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.

Re: HP has major ethical problem, day 4

Robert Scoble — Sun, 10 Sep 2006 01:56:05 -0000

Don Park: this was a totally over-the-top action that calls for a totally-over-the-top reaction.

Re: HP has major ethical problem, day 4

Dave Goodman — Sun, 10 Sep 2006 00:20:15 -0000

Dunn says, "The chairman is not a unilateral power position. I am a servant to the board."

She's just a servant to the board? Then she should be getting minimum wage and no more.

Re: HP has major ethical problem, day 4

oswald mozzarelli — Sat, 09 Sep 2006 21:39:50 -0000

Like my great-grandfather would always say "Two wrongs don't make a right but it's a good start."

Re: HP has major ethical problem, day 4

Brent Ashley — Sat, 09 Sep 2006 20:41:44 -0000

I think anyone who tries to feed us the bullshit that the fraud of impersonation can be reframed as some lesser transgression called "pretexting" perhaps deserves to be sent to Guantanamo and subjected to "waterboarding" and other such fun-sounding and equally accurately named diversions.

Re: HP has major ethical problem, day 4

topgold — Sat, 09 Sep 2006 17:23:29 -0000

Pat Dunn has been a go-to fixer in the corporate governance circle for several years now and one would think she fully understands the need for every action to survive a reading on the front page of business papers. She's having her reading now.

Re: HP has major ethical problem, day 4

Maurice — Sat, 09 Sep 2006 16:43:37 -0000

oh just noticed that Partica Dunn is book to appear at conference spaeking on corporate governance.

http://paul.kedrosky.com/ar...

I think you sould take a camera crew and door step her at that conference.

Re: HP has major ethical problem, day 4

radaronpaws — Sat, 09 Sep 2006 16:39:08 -0000

I'm thinking of a completely non-silicon valley situation with a board of directors in complete denial - seems to me this will be the same. They won't do the right thing, because at a minimum, that would be an admission they were wrong, and at the most, they (or some of them) were involved in unethical behavior. Certainly not a surprise in big business, but bad nonetheless.

Hopefully I'm wrong, Dunn will be Done, and eventually the board of directors will receive the purging it deserves.

What amazes me is how stupid and shortsighted some of these people who are supposedly sophisticated business people can be. I have a deep, unshakable cynicism regarding the competence of the people getting huge salaries to lead these corporations, and this kind of thing doesn't help me change my mind any.

Re: HP has major ethical problem, day 4

sdpurtill — Sat, 09 Sep 2006 16:36:19 -0000

I really don't think she's going to resign. It means much more than a position; she represents the struggle for women to make it to the top. If she resigns, that leaves Meg Whitman of eBay alone...

Re: HP has major ethical problem, day 4

Maurice — Sat, 09 Sep 2006 16:31:06 -0000

ER a phone conference - FFS - The Board is still in denial here.

This is one of the most important board meetings at HP in the last few years and they arnt meeting in meatspace.

Interesting that the chair has admited to employees - sounds like she's on the way out.

Rgds Maurice

ps your right about the board there has to be a major clearing out.

Re: HP has major ethical problem, day 4

Robert Scoble — Sat, 09 Sep 2006 16:05:02 -0000

Damn, I'm agreeing with Shelley Powers. Now you know just how bad this board's actions are.

Re: HP has major ethical problem, day 4

Shelley Powers — Sat, 09 Sep 2006 15:04:58 -0000

"Even my seventh grader knows there’s something smelly about looking at people’s phone records. Patricia Dunn, when she was presented the evidence about the leaker, had to have seen that phone records were involved."

If she resigns, the entire board needs to resign. They're all culpable.

Re: HP has major ethical problem, day 4

Robert Scoble — Sat, 09 Sep 2006 15:01:41 -0000

/pd: well, this whole board is complicit.

When you have a lack of ethics the stench spreads over more than one person.

Personally HP would be well served by finding a new board to lead it.

Re: HP has major ethical problem, day 4

John Hunter — Sat, 09 Sep 2006 14:51:55 -0000

H-P board to discuss Chairman Dunn's fate:
"The board of Hewlett-Packard Co. will hold a phone conference on Sunday to decide the fate of Chairwoman Patricia Dunn" http://www.marketwatch.com/...

Re: HP has major ethical problem, day 4

/pd — Sat, 09 Sep 2006 14:28:29 -0000

"Sorry, she’s gotta go." - yah to that
"And same with this whole board." - nay to that !!

The board is elected by the shareholders..