Perspective: Time for HP to clean house

Until now, Hewlett-Packard Chairman Patricia Dunn and her henchmen deserved the benefit of the doubt. Now they deserve the boot.

In a move that recalls the silliest days of the Nixon White House, HP spied on its own board members to locate the source of a press leak. That was monumentally bad judgment. With the unfolding of the "Patriciagate" scandal, we now know that HP's operatives also spied on reporters. That's monumental stupidity.

After a January CNET News.com article disclosed details of HP's strategic planning, Dunn assumed the anonymous source in the story was a board member and ordered an investigation. It's still unclear when she decided to let her colleagues in on this particular brainstorm.

When you reach Dunn's level of accomplishment, it's assumed you know right from wrong.

After learning that investigators obtained his private telephone records from AT&T without his permission, Tom Perkins resigned in May as an HP director. A Silicon Valley power broker and co-founder of the venture firm Kleiner Perkins Caufield & Byers, he finally went public with details of this latter day Plumbers stunt earlier in the week. That blew the lid of secrecy off the story.

It turns out that HP's crack investigators also accessed the personal phone records of my News.com colleagues Dawn Kawamoto and Tom Krazit, who co-wrote the story at the center of this affair. Other reporters, including individuals at The Wall Street Journal and The New York Times, also were targeted. Later today, California's attorney general is expected to release a list with the names of journalists whose phone records, he believes, were illegally obtained.

special coverage
HP's boardroom drama

Investigation into media leaks used controversial data-gathering method, SEC filing confirms.

"HP is dismayed that the phone records of journalists were accessed without their knowledge and we are fully cooperating with the attorney general in his investigation," Mike Moeller, an HP spokesman told News.com.

Sorry, Sparky. Not good enough.

Neither is the hair-splitting language HP's legal beagles used to submit the company's official explanation of the affair to the Securities and Exchange Commission.

Instead of coming clean, the company stonewalled. It initially sought to keep its hands clean by pointing blame at an unidentified outside consulting firm. In some cases, HP declared, the company had employed "pretexting" but that its use at the time of the investigation "was not generally unlawful." The document went on to add that nobody at HP could say for sure whether the techniques employed were entirely legal.

The HP lawyer who worked up that rationale obviously skipped one too many ethics classes. This remarkable circumlocution notwithstanding, the Federal Trade Commission is quite clear about when pretexting is against the law. Similarly, California law prohibits impersonating someone else to get their phone records.

Talk about shooting yourself in the foot. Since Mark Hurd took over from Carly Fiorina as CEO in January 2005, the company had enjoyed an extended period of stability with improving sales and earnings. With the state attorney general now breathing down its neck, the company faces its biggest public relations crisis since the board threw Carly Fiorina to the dogs.

Patricia Dunn is not an idiot. She's been an HP director since 1998 and the chairman of the company's board of directors since February 2005. Dunn is the former CEO of Barclays Global Investors and serves on the advisory board of the UC Berkeley Haas School of Business. When you reach Dunn's level of accomplishment, it's assumed you know right from wrong.

If you can't meet that minimum qualification, the job should go to someone else.

Biography
Charles Cooper is CNET News.com's executive editor of commentary.

More Perspectives

[Hep Cat]

We told you so.

We railed against the Hewlett-Packard/Compaq merger.

We protested that it would destroy the "HP way".

We told you that there was nothing in the merged company that
HP didn't have already, and that it was just more business school
tricks employed by hucksters who just couldn't stop after their
first twenty million in net worth.

Well, here's what you get. Hope you all enjoy the new HP way.
nice to see News.com backing off it's five-year congratulatory
streak for HP.

[Jackson Cracker]

it's time for a perp walk

The people responsible for this should all be hauled off in handcuffs.

[candhobbes]

What's wrong with HP?

It just wasn't Carly or Patricia Dunn.
Maybe the HP board itself is what is wrong, as they are the ones who elected Patricia Dunn to be among themselves and chose Carly as CEO. Solid hard work built HP up, not CEO marketers, inarticulate business strategies, boardroom politics, or Alias episodes starring Patricia Dunn. HP shareholders would be better off elsewhere, HP customers ought to be worried.

[ray08]

Hey, Charlie, watch your back!

Better keep a close eye on your personal data or HP will access it to smear you!

How can Dunn not be done? What company would ever have her on their payroll now?

[fred dunn]

What was that you said Mark....oh nothing???

So where is Mark Hurd in all of this? As far away as he can possibly get.
If Mark Hurd doesn't correct this situation by demanding Ms. Dunn's resignation from the board then he is as guilty as she is.
As a matter of fact where are the ethics of the rest of the board members that were complicit in this conspiracy?

HP's lawyers are trying to play this down and make it go away. I have news for you folks, this is going to be remembered for a long time by the wrong folks.
IT professionals know the value of data security and privacy and they are the same people the either buy or not buy and recommend or not recommend HP products.
Unless HP does clean house this IT person is not even going to admit HP exists.

[flitcraft33]

NIMBY

Funny, HP execs and others can 86 American workers for H1B replacements and if its mentioned at all, reporters just comment that it is happening and move on. But do something like GASP read my phone bill and suddenbly Mr. or Ms. Board member NEEDS TO RESIGN!!!

Where is the indignation over the ruined lives of dedicated IT workers? Nowhere, but omG touch a reporter and you're scum.

The fourth estate would get far more traction on these issues if they had the same level of indignation and consideration when covering similar issues about other people.

[Hep Cat]

re: NIMBY

"Funny, HP execs and others can 86 American workers for H1B
replacements and if its mentioned at all, reporters just comment
that it is happening and move on. But do something like GASP
read my phone bill and suddenbly Mr. or Ms. Board member
NEEDS TO RESIGN!!!"

Because it needs to be said again. I suspect Coop will ignore this
very valid comment; journalists are completely divorced from
reality these days, simply looking forward to the next cocktail
party with the people they're supposed to be keeping honest.

[Too Old For IT]

-gate not appropriate

G. Gordon Liddy might be offended at referring to this as Patriciagate.

After all, Watergate was about something important: Removing a list of prostitutes with Maureen Biner's name on it, and replacing it with one that did not have her name on it.

(Maureen Biner was White House Counsel John Dean's fiance.)

The mess at HP is just about business as usual up in the mahogany suites, where the elite play.

[BoxlessThinker]

All of them should go...save Keyworth

Why is there this insipid assumption that no one except Dunn knew what was going on? For us to believe that Dunn acted privately is to assume that Ken Lay did not know what company he worked for, what they were doing, or anything connected to anything unethical. Not only should Dunn go, but the entire board including the CEO. The Board knew and talked about Dunn hiring an investigative firm to find out who was behind the leak. It is outlined in Tom Perkins' letters which he published, and how he vehemently disagreed with the other board members, save Keyworth, about the way in which they would find out the leaker. The only twist was that Dunn did not disclose that she would spy directly on the Board's private commmunications outside of the company. Clearly most of the Board was okay with Dunn investigating the leak and spying on OTHERS in a dark manner...just not themselves. What is somewhat humorous is that it was the board members themselves who were the target. To believe that Dunn acted alone...without letting her board colleagues know is unrealistic and the facts show otherwise. Tom Perkins was inflamed which caused his immediate resignation. And the other board members, save Keyworth who was protesting by staying on, knew about the private investigation. What is ridiculous is that nothing Keyworth released was that shocking or secret. Everyone knows HP's strategy as it was presented. I do not believe Keyworth had any malicious intentions whatsoever. For the board not to talk this through is telling. What other backstabbing was going on there...hmmmm.

[fred dunn]

Total Agreement

Amen to that?
I'd like to add "What is Mark Hurd saying about all of this? Where is the CEO when you need him?"

My guess is that he is not taking calls.

[mklinz01]

Oh Bill and Dave whaere are you?

Hurd shouldn't have to call for the resignation of the board, if they had any class and even the slightest concept of ethical behaviour they would quit. Starting with Dunn and Hackborn, they should have quit after they fired Carly because of their initial and continued support. Hackborn may not have been mentioned to this point in the recent scandle but IMO he's in it up to his shoulders. OH, Bill and Dave we miss you!

[chuck_whealton]

How Unfortunate

Right as HP appeared to be making some type of decent comeback, they pull this - or it finally gets leaked. Figures.

While I'm all for any company ensuring it's secrets are kept secret, this basically goes (to far) in the same unethical direction that much of corporate America appears to be going in regarding their own employees, or potential employees.

Much of corporate America seems more preoccupied with profits and image as opposed to doing what's right, anymore. It gets scarier every day.

Charles R. Whealton
Charles Whealton @ pleasedontspam.com

[gerhard_schroeder]

Spying on journalists!! An outrage!! OMG!!

I love how the media is always the MOST angry whenever somebody does something to other members of the media...

Like when a journalist gets 'offed in Iraq or something. THEN its an outrage.

Charlie boy is just following the perfect liberal media template by turning something FUNNY into AN OUTRAGE because it happened to journalists. Whaaa, you big baby....

[malvankar]

What is right and what is wrong?

I guess in this world who ever has bigger voice and bigger reach for the audience is always right?

Was it ethical or right for an HP board member to leak the strategy related information to media?

Was it ethical or right for another board member to back a person who clearly breached HP?s trust?

Was it ethical or right to take extreme measures to protect HP?

Is CNET totally right or ethical in putting out these stories?

For the sake of rightness and virtues please leave HP alone, if there are any decisions to be made, HP management is capable enough for that, there is no need for someone like Charles Cooper to call them idiots. HP?s performance in last year speaks how capable HP management is so let them do the work, just back off.

[gerhard_schroeder]

OUTRAGE when the media is wronged... =)

Don't you love the OUTRAGE the media has when somebody does something to a reporter or a journalist or a freaking columnist?

I swear... WOW, HP spied on REPORTERS!! I'm supposed to get as worked up and lathered up as Charlie-boy here? If I were running a company, I would damn well spy on any reporters coming in the premises. Its just savvy business...

But the media is so angry when you do something to the media. They put people who do things to the media on a level worse than they put killers.

After all, the media always wants to hear a killers side of the story. But they don't want to hear HPs reasons for wanting to tap some reporters and trail a DIS LOYAL rat in their midst...

Charlie boy feels sorry for the rats of the world. His ANGER at HP right now is unmatched...

[charlie cooper]

Au contraire

Sounds like you have issues with the media that go beyond the scope of the story at hand. Be that as it may, you seem to believe it is fair & proper for HP investigators to obtain personal phone records of board members AND reporters by the use of pretexting. I do not share your opinion. And judging from what California's attorney general told News.com yesterday, HP may have a hard time convincing him as well.

[mal v]

The Pot Calling the Kettle Black

I agree, 100%, the poor media never invades a person's privacy. I could go on and on, but I don't have the "freedom of the Press", or any of the other lies and things that they use. "Free Speech" is for them only. Doing all the hurtfull and humiliating things that they do, is for them only. They don't all stink, but a lot of them do and they are usually the ones that holler the worst and first. Too bad I can't use a name ot two as an example, but I feel that the freedom of speech would not apply for me, but I understand, the is not my website. Thank you for letting me vent my spleen a little.

[charlie cooper]

Au contraire

It sounds as if your issues with the media go beyond the scope of my column. You apparently believe it is fitting and proper for a company to surreptitiously obtain the personal phone records of board members AND reporters without their permission. I do not share that view.

This story isn't primarily about what HP may or may not have done to reporters. It's about poor judgment and corporate governance.

Cheers

[sipos]

The HP Way -Which way?

The distorsion of the HP Way started under Carly.
The spying on employees,the atmosphere of secrecy, the political appointments, suppression of dissent,disregard for competency, the de-technologization of HP were all steps which led to this gross legal, ethical and moral violation.
With Carly's stuges the HP Way will lead to many such events. You are right it is time for HP to clean house but not only in the BOD but also in the management ranks

[sipos]

The HP Way -Which way?

The distorsion of the HP Way started under Carly.
The spying on employees,the atmosphere of secrecy, the political appointments, suppression of dissent,disregard for competency, the de-technologization of HP were all steps which led to this gross legal, ethical and moral violation.
With Carly's stuges the HP Way will lead to many such events. You are right it is time for HP to clean house but not only in the BOD but also in the management ranks

[97330]

HP Phone logs

I doubt if you or I can do anything to impact HP, but I can certainly not buy their products. This HP scenario is wrong. It is time to clean house. What has happened to integrity?

R Tucker

[wally.cnet]

HP invent. No, HP layoff. No, HP pretext. No, HP spyware.

Seen this t-shirt?
HP invent (invent crossed out).
HP layoff.
HP pretext.
HP spyware.
HP bankrupt.
Seriously, I'm considering not buying any more HP products until genuine return of the HP WAY.