Tuesday, September 12, 2006 10:26 PM PT Posted by Harry McCracken
Other than news of iPods and movie downloads, the major tech event of the day was word that Patricia Dunn, chairman of HP, will
step down in the wake of the
bizarre use of "pretexting" to get unauthorized access to the phone records of HP board members and reporters.
Dunn's time as HP chairman may be coming to an unhappy end as a result of reckless actions taken under her direction, but it still doesn't feel like the company truly took steps to put this behind it.
The
official press release certainly acentuates the positive, with its cheery headline stating that Dunn will remain as chairman until January. Nowhere does the word "resigned" (or the less dignified "fired") appear. And it states that Dunn will remain a director.
Dunn's quote in the release does include an apology for unspecified "certain inappropriate techniques" used in the investigation, but it devotes considerably more words to the gravity of the leaks that inspired the investigation than it does to the data theft which she's apologizing for.
In other words, it's oblique and defensive and doesn't really prove that she understands what happened here. If Dunn had immediately said "We screwed up profoundly--no excuses" and apologized to the millions of people who trust HP to respect data privacy, not abuse it, you kind of wonder if she might have been able to hold onto her job.
The latest twist in this saga is that
Congress and the FBI are launching investigations of HP's investigation. The company may be providing a soft landing for Chairman Dunn, but this story clearly isn't going away anytime soon...
This is an unfortunate incident. As a recent MBA graduate I must adhere the concepts of corporate ethics, regardless to the need of implementing a complete internal auditing project. She made the mistake of undermining her entire board. The reason that the board wanted her to stay was probably to ensure that she does not have any information on them.
This should not affect HP's earnings although it might deter certain talented engineers, consultants and executives from joining Hewlett Packard. Headhunters will probably have a difficult time convincing their clients that HP is the place to be.
HP is not at fault in this situation. Depending on the contractual agreement that was made with the PI company it must have been arranged that the liability was not with HP. They can always say that they were not aware as to the methods that were to be used in order to ensure that these members were not divulging corporate information.
What is most unfortunate about this is that she was caught.
Don't do the crime if you can't to the time! Don't do it!